BRUSSELS, November 4 (RIA Novosti) — Geopolitical tensions are among the main risks to the European Union's outlook for economic growth, the European Commission said Tuesday.
"Downside risks to the growth outlook still dominate, in particular related to geopolitical tensions, possible market reactions to the normalization of US monetary policy and also risks related to the pace of reform implementation in Europe," European Commissioner for Economic and Financial Affairs Pierre Moscovici told reporters.
According to the European Commission's latest economic forecast, "developments in the EU economy remain shadowed by major risks".
"A new round of sanctions between the EU, the US and others and Russia pose a larger roadblock to European growth prospects than currently envisaged in the forecast, including a more negative impact on domestic demand via deteriorating confidence in the EU," the forecast reads.
"It is assumed in this forecast that sanctions with limited duration will expire in 2015, and that the impact of the tensions will gradually ease thereafter," the Commission said, though the sanctions "could also remain effective for longer than currently assumed".
The European Union, alongside the United States, has imposed several rounds of economic sanctions on Russia over its alleged involvement in the Ukrainian crisis, claims Moscow has repeatedly denied. The sanctions target Russia's banking, defense and energy sectors, as well as certain individuals.
In August, Russia introduced a one-year ban on the import of certain food products from countries that had introduced sanctions against it.
