A European Union Official for the Arab World: We expect 4% growth in 2022

The European Union Commissioner for Budget and Finance, Johannes Hahn, confirmed in an interview with “Al Arabiya” that his visit in Saudi Arabia included a discussion on strengthening cooperation in financial and economic field between the Kingdom and the European Union.

Hahn claimed they are in ongoing work to attract more investment from the region, in particularly from Saudi Arabia, to finance the European Union recovery fund known as Next Generation EU FUND with a value of 800 billion euros, as the European Commission intends to take in loan about 150 billion euros per year until 2026.

And he indicated that the funds will be raised through the capital markets through the issuance of bonds, a third of which are green bonds, explaining that the bonds will be sovereign and may not bring an attractive return like other investments, but they are issued aside. of an entity with a credit rating of AAA, and therefore is considered a safe asset.The funds will also be used to invest in the green transformation of the Union The European Union and in the development of the economy and this will strengthen the position of the euro as the second world currency.

Han expected the EU economy to grow by around 4% questyear, after growing 5% last year, stressing that he is optimistic about the economic recovery.

Han said his optimism comes despite the challenges of inflation and disruption of supply chains, noting that European countries achieved growth of around 5% last year.

The EU economy was also expected to return during the second half of questyear at pre-pandemic growth levels, but we are not only aiming for this, but we aim to improve it and take advantage of all opportunities.

He highlighted what the markets have witnessed during the past few weeks of disruption to global supply chains, which has affected many manufacturing sectors, including the automotive industry.

He said the markets are suffering from a shortage of semiconductors and this is hindering the recovery, but I am optimistic and “of course we are also facing rising inflation mainly due to rising energy prices, but in short I’m optimistic. “

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