The European Union may not be far from a recession if the main threats that it's facing, like a no-deal Brexit or the trade tensions with the United States, become a reality, said the European Commissioner for Budget and Human Resources Günther Oettinger.
"The economic situation will slightly worse, and the best years are behind us,” he said in an event organized by the New Economy Forum, warning that if those events converge, a recession may be happening soon.
Scaling trade tensions with the U.S. may play against the union, so he wishes for the economic relationship with the United States to stay strong while warning against punitive tariffs. However, he called president Donald Trump an "autocrat" that is putting the European model in danger.
Oettinger also warned raising EU's public debt level, specifically against certain countries like Italy, adding that the risks associated with them could harm the European Union.
After highlighting the need for a stronger union, he made a reference to the different electoral processes that the continent is facing this year, among them the European elections in May and the Spanish general elections in April. The major challenge would be the neo-nationalist movements, as they threaten "destroying Europe."
As the Bank of England is preparing for the Brexit while trying to guarantee Euro liquidity, Spain could become the fourth biggest economy in the Union. This change would give it more prominence in the European Parliament, the council and the commission. On the other hand, the budget is going to be affected and the members of the Union might need to contribute more towards the expenses unless they're ok with spending less on certain programs.
He also defended the European commission's decision regarding economic competition issues, like blocking the Siemens-Alston rail merger, as this was going against the current laws. After highlighting that China doesn't have a place in the European rail market, he remarked that the laws are open to change.