Germany's Scholz: EU recovery prospects good, but worst might not be over

BRUSSELS (Reuters) - There are indications that the European economy will recover well from the pandemic-induced recession, but the worst might not be over yet, Germany's Finance Minister Olaf Scholz said on Wednesday.

Speaking via video-link to the economic committee of the European Parliament, Scholz, whose country holds the rotating presidency of the 27-nation EU, said Germany's focus over the coming months would be to finish the process of setting up the EU's 750 billion euro recovery package and the next EU long-term budget of 1.074 trillion euros.

"Europe has dealt with a historic challenge and has provided a very good response, has shown solidarity in its response," Scholz said.

"The economic situation is quite serious in Europe. That is why it is important in the second half of the year to tackle the serious recession we are experiencing. Current indicators give us hope that we will have a good recovery, we se that in a number of countries around Europe, but these developments are still quite precarious and I can't say we are over the worst of it yet," Scholz said.

(Reporting by Jan Strupczewski)