Eurozone on the road to recovery, yet unemployment threat looms

DAVOS: The Eurozone is showing strong signs of recovery, but the crisis is far from over as the present unemployment levels are "unacceptable" and a threat to the overall recovery process.

Speaking today at the 44th World Economic Forum Annual Meeting, Jose Manuel Barroso, President of the European Commission, warned that while the Eurozone was showing strong signs of recovery, the crisis was far from over. "We're not out of the crisis with such high levels of unemployment," Barroso said adding "we need to keep the emphasis on reforms. We have learntour lessons but the work is far from over."

According to Barroso, increased competitiveness is the key to the Eurozone's revival and to drive competitiveness, internal markets must be deepened, trade agreements such as the Transatlantic Trade and Investment Partnership (TTIP) implemented and there should be increased research and development investment.

Echoing similar sentiments, Taoiseach (Prime Minister) of Ireland, Enda Kenny said, "we've made some very difficult decisions in the last three budgets, and there are still challenges ahead for Ireland."

Ireland's recent emergence from recession has been hailed as a model of financial management. According to Kenny, Ireland would clock a 2 per cent GDP growth this year, which is expected to rise to 3 per cent over the medium term.

"Inward investment is strong, exports are rising and we've improved our research and development budget," he said adding "we need to continue to deal with access to credit and mortgage regulation. But I see our people, at long last, with a sense of confidence starting to return."

Besides, Barroso, the panel included Angel Gurria, Secretary-General, Organisation for Economic Co-operation and Development (OECD); Joe Kaeser, President and Chief Executive Officer, Siemens; Enda Kenny, Taoiseach of Ireland; Fredrik Reinfeldt, Prime Minister of Sweden and Fabrizio Saccomanni, Minister of Economy and Finance of Italy.