Economy is lowing down and inflation is rising in Europe. The official confirmation, after several incomplete signs, comes from the EU Commission in its "interim forecasts" disclosed by the Spanish MEP Joaquín Almunia. "Growth should fall to 2% within the 27 member states and to 1.8% in the euro-zone" this year, i.e. 0.4 points less than the autumn forecasts. Almunia explains that some factors that back then were perceived as mere risks have "materialised" since October: "the long-term crisis on the financial markets, the marked slowdown in the United States, the high prices of raw materials". Hence the rise in inflation, associated with "the rising prices of foodstuff and energy", which should reach an average of 2.9% within the 27 member states and 2.6% in the fifteen countries that use the single currency. "Europe is starting to feel the effects of the adverse winds across the world explains Almunia -. However, its sound fundamentals are helping it overcome the storm". The recipe provided by the Executive is still the same: "Continuing the structural reforms, checking the state budgets" through public expenditure, sticking to "healthy macroeconomic guidelines". (continued)
