In 2023，the Russia-Ukraine conflict continued，and the European economy struggled to develop under the influence of multiple adverse factors. Thanks to the significant drop in energy prices，Europe’s inflation rate has continued to decline since the end of 2022. However，for the entire year of 2023，the inflation rate in the EU and Eurozone remained above 5%，and consumer prices were also at historically high levels. High inflation and high prices remain the most important factors affecting the economic situation in Europe in 2023. In 2023，to suppress inflation，the European Central Bank continued to tighten monetary policy and raised interest rates several times，raising three key interest rates to the highest level since the introduction of the euro. High inflation and high interest rates，coupled with weak external demand caused by weak global economic recovery，have further weakened the economic recovery momentum of the EU and major European countries in 2023 compared to 2022. In addition，as European countries gradually withdraw from social assistance measures such as energy subsidies，the overall public financial situation of the EU and its most member states has slightly improved in 2023，but the overall characteristics of high debt are still difficult to change. In addition，in 2023，the implementation of the “Next Generation EU” recovery fund and the new progress of the EU in promoting green and digital “twin transitions” still deserve attention. Finally，this report also provides an outlook for the European economy in 2024.