"Economy in the euro-zone is facing substantial difficulties, markedly a persisting uncertainty about the length and final cost of the financial crisis" that arrived last summer from the United States. But one should consider "the weakening of the US economy and the rise in the prices of raw materials". The EU Commissioner Joaquín Almunia, in charge of economic affairs, presents the Quarterly Report on the euro-zone, which corroborates the forecasts published on 21st February. "Despite sound economic fundamentals goes on Almunia , the euro-zone is starting to be shaken" by the turbulence that began to appear in the summer of 2007. The Spanish Commissioner speaks of an "increasingly difficult climate". The Gross Domestic Product in the 15 states that use the single currency should stop at 1.8% p.a. versus 2.2% of the last quarter of 2007. Forecasted inflation is 3.3%, far from the 1.7% of the mid of last year. Among allegedly "encouraging" factors, Almunia includes a rise in investments. "In the industrial area he adds , the confidence indicators have held out over the last few months and the first indicators of industrial production are better than expected". (continued)
