Cautiously positive projections have been made about the rate of inflation in the EU. The group of economists of the European Commission, charged with studying trends in inflation rates, recently presented its own estimates for the next two years: with reference to the 25-member EU, inflation ought, they say, to stabilise at 2.2% in 2004, before falling to 2.1% in 2005 and 1.9% in 2006. The forecasts for the euro zone (the 12 countries of the Euro) are marginally better, with percentages respectively of 2.1%, 1.9% and 1.7%. “Generally higher”, on the other hand, are inflation rates in the new member states, which are still having to pay for larger quantities of imports than their total volume of exports. In spite of the growth in the price of oil and its inevitable, though deferred, repercussions on energy and fuel bills the Commission thinks it possible for the governments of the member states to respect the forecasts of Brussels on condition that they curb public expenditure, reduce indirect taxation and improve tax revenues, also thanks to more effective measures against tax evasion. For further information, consult the website: http://europa.eu.int/comm/dg/econ
