Europe is currently dealing with the impact of a “double crisis,” but according to Paolo Gentiloni, the European Commissioner for economic affairs, the region can avoid a recession. In an interview with AsumeTech, Gentiloni emphasized that while the geopolitical impact of Russia’s invasion of Ukraine has affected the US and the rest of the world, its economic implications have been significant for Europe, especially Germany.

Gentiloni further stated that Europe’s fears of a major economic slowdown due to Russia’s actions have eased over time. The region has managed to secure alternative energy supplies, reducing its dependence on Russia, and some governments have provided relief to consumers facing high energy costs.

According to the International Monetary Fund, the euro area experienced a growth rate of 3.5% in 2022, surpassing that of the US and China. The institution expects the euro zone to grow by 0.8% this year and 1.4% in 2024.

While acknowledging the slowdown that began in the last quarter of 2022, Gentiloni urged against calling it a recession, expressing confidence that Europe can avoid one.

The European Commission will be releasing new economic forecasts for the entire region on September 11, which will provide a clearer picture of the growth situation.

However, recent economic data has raised concerns about a slowdown. Business activity in Europe contracted in August, reaching its lowest level since November 2020.

Inflation has also been a concern, with the headline figure remaining stable at 5.3% in August, compared to the previous month. Although lower than earlier this year, it still exceeds the European Central Bank’s target of 2%.

Gentiloni attributed the slowing down of the economy to the challenge of achieving energy independence, which has been costly for families and has contributed to inflation.