The quarterly report of the EU Commission on the euro-zone also reviews price rises in each country and finds that "each economy reacted differently" depending on the weight of energy and food consumption in its national basket. The Commission made some mid-term considerations: for instance, that the reforms made on the labour markets to make them more flexible have resulted in a general growth in employment, but "to the detriment of those who do not benefit from a standard employment agreement". The Almunia report was endorsed by the president of the European Central Bank, Jean Claude Trichet, who met the economic committee of the EU Parliament this morning. According to the ECB President, the price rises "should last longer than expected" and might be worsened by the escalation in salaries. Trichet repeated that inflation is directly related to the rise in the price of crude oil and foodstuffs. The subject will be resumed in the afternoon during the extraordinary session of Parliament to review the results of the European Council of 13 and 14 March.
