Europe is facing the consequences of a “twin crisis,” but the region can avoid recession, European Commissioner for Economic Affairs Paolo Gentiloni told CNBC, News.ro reports.

“I think we are dealing with the consequences of a twin crisis,” Gentiloni said, referring to the geopolitical impact of Russia’s invasion of Ukraine and the subsequent economic blow to the European continent.

“From a geopolitical point of view, [criza] it affected, of course, the USA and the whole world, but from an economic point of view it seriously affected Europe and especially Germany,” he said.

Russia’s invasion of Ukraine in February of last year caused serious fears in Europe that the economic situation in the region could slow down.

However, the region has since managed to secure supplies of alternative energy, which until then came mainly from Russia, and some governments have been able to offer help to consumers facing high energy costs.

According to the International Monetary Fund, in 2022 the Eurozone grew by 3.5%. The institution expects the euro area to grow at the level of 0.8% this year and 1.4% in 2024.

“We had a great 2022, growth was higher than the US and China,” Gentiloni said at the Ambrosetti Forum.

“The slowdown started in the last quarter of 2022 and it is there, but please don’t call it a recession because I think we can avoid a recession, we are avoiding a recession,” he said.

The European Commission, the EU’s executive body, publishes new economic forecasts for the entire region on 11 September. They will give an idea of ​​economic growth in the Union.

However, recent economic data has raised concerns about a slowdown. For example, European economic activity fell in August to the lowest level since November 2020.

Inflation has moderated in recent months, but the latest data shows that the headline figure remained stable in August compared to the previous month at 5.3%. Although slower than earlier this year, it is still well above the European Central Bank’s 2% target.

“After a strong post-pandemic recovery, why is our economy slowing down? I think because of the challenge of achieving energy independence, which has been very expensive for our families and fueled inflation,” Gentiloni said.