Moscovici Says Brexit Won’t Push European Union Into Recession

Moscovici: Brexit Won’t Push EU Into a Recession

The European Union has the tools necessary to prevent the bloc’s economy from sliding into a recession, EU Economic and Financial Affairs Commissioner Pierre Moscovici said.

“There is still uncertainty that has to be addressed, but we see no strong turmoil or crisis,” Moscovici said in an interview with Bloomberg Television on Monday. “It’s not a crash in the markets, so everybody can be reassured that the situation will be taken seriously and well handled.”

Pierre Moscovici

Photographer: Jasper Juinen/Bloomberg

The U.K. vote last week to leave the EU roiled global markets, with the pound suffering a record selloff and $2.5 trillion wiped from global equity values on June 24. U.K. Prime Minister David Cameron gave his intention to resign as European Commission President Jean-Claude Juncker faced calls to step down in the wake of the vote.

“We have the tools, especially with the central banks that are cooperating, to ensure financial stability to reassure the markets and bring liquidity if necessary,” Moscovici said.

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