Since the third quarter of2015，the European economy continued in the recovery process，while the economic growth rate is modest. The quantitative easing monetary policy，including negative interest rate and expansion of Public Sector Purchase Program，and accommodative fiscal policy has played a positive role in promoting European economic recovery. However，the stable recovery of European economy is facing some challenges：the continuing slack global economic growth，financial market uncertainty after UK referendum etc. In 2017，the European economy will in the process of modest recovery.