EU is currently in a fairly good spot

MARCH 2017 is a pivotal month for the European Union (EU). It marks the 60th anniversary of the Treaty of Rome. British Prime Minister Theresa May has chosen to invoke Article 50 negotiations for the UK to leave the EU after 44 years of membership. No better time to do a check of the state of the union.

Much to the surprise of most people being fed bad news by the media, the EU is in a fairly good state and can look to the future with confidence. The eurozone economy is stronger than for many years. Gross domestic product (GDP) growth close to 2 per cent in 2016 seems likely. After the Brexit vote in June 2016, British growth surprised on the upside. This year, growth may surprise on the downside ending much lower than the 1.5 per cent forecast.

The eurozone shows a balanced economy. It is running a hefty surplus on its balance of payments (3.3 per cent of GDP) compared to a deficit for the United States of 2.6 per cent and for Britain of 5.4 per cent. Its budget balance is -1.8 per cent, much better than the US figure of -3.2 per cent not to mention Britain's 3.7 per cent.