Monday, April 04, 2005

Eurozone growth spirals downwards

Oil prices are on the rise again and the EU has cut its growth forecasts. The EU’s growth forecast has been looking pretty poor for some considerable time and this is simply an admission of the obvious by the European Commission.

In its Spring Forecast the European Commission says that its sees -

…… a number a downside risks to its spring forecasts, including further oil price hikes, disorderly exchange rate adjustments and more subdued consumer confidence which, if confirmed, would weigh on private consumption growth and could also hold back investment plans.

That’s putting it mildly. The EU, and specifically the Eurozone, is structurally weak and without reform to the bloated welfare states in many member states the chances are that the Eurozone will continue to see rising unemployment; its's economic stagnation at best, and a slide into recession at worst.

I’m not in the habit of promoting marketing gimmicks but I think this mug from the people at 2DTV is worth a look even if you don’t buy it – Charles & Camilla