ECONOMIC SITUATION : ECONOMIC CLIMATE STABILISES IN THE EU.

• Position: Brief article

The Economic Sentiment Indicator (ESI) in the EU and the euro area remained broadly stable in December, decreasing by 0.2 of a point. At 112.9 for the EU and 110.1 for the euro area, the indicator still stands well above its long-term average, the European Commission said in its monthly economic report, published on a5 January.

The stabilisation in the sentiment indicator for the EU is the combined result of improved sentiment in the services sector and unchanged confidence among industrials, builders, and consumers, offsetting a sharp decline in confidence in the retail trade sector. Among the large Member States, confidence improved in Poland (+4.4), Spain (+3.4) and in Italy (+0.3), while it decreased in France (-2.0) and Germany (-0.3), and remained stable in the UK.

The service indicator is well above its long-term average in all countries except Spain. In December, the UK (+6), Spain (+4), Germany (+2) and Poland (+1) registered a rise in confidence...