This page provides a snapshot of the Eurozone economy. Currently, unemployment is at historic lows in Europe while wage growth is high. While this tight labor market should provide support to household consumption this year, helping to ease fears of a recession in Europe, it does raise the risk of the European Central Bank hiking rates further into restrictive territory. On the right, we show which countries have received EU recovery fund grants and the amount as a percentage of GDP. This is a very important change for the region: the move from fiscal austerity to fiscal spending and the move from “every country on their own” to a form of “fiscal union”. This is a key change which argues for growth, inflation and rates in Europe to be higher than over the past 15 years.