The Executive’s budget report states that "inflation should remain moderate, although the price levels should slightly rise" "because of the new rise in the oil price and the economic recovery". So, Almunia invites, as he had done last week when he had announced a similar survey on the euro-zone, "not to lower the guard". "We must help the economic recovery by providing a sounder basis for the public finances and by continuing the reforming process explains the Spanish MEP . This, in turn, will reduce the public debt and will help increase the growth potential before the aging of the population begins to be felt". Europe’s better economic prospects are accounted for, according to the EU Commission, by several concurring factors: a livelier domestic demand, an increase in investments "driven by the companies’ high profitability", and "the widespread optimism of the trade operators". The Budget report also reviews the "external risks", related to the economic dynamics of the USA and the main Asian countries. Similar risks could come from "further geopolitical tensions" that could "lead to a further increase in the oil price".
