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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: calgal who wrote (510715)	12/15/2003 11:52:49 PM
From: calgal	Read Replies (2) \| Respond to of 769667

EU Sees Economic Recovery Gathering Speed Mon Dec 15, 1:59 PM ET By PAUL GEITNER, AP Business Writer BRUSSELS, Belgium - Economic recovery in the dozen nations that share the euro currency is gathering momentum, buoyed by a global upturn and signs of improving domestic demand, the European Union (news - web sites)'s head office said Monday. Related Quotes DJIA The European Commission (news - web sites) noted that exports had "kick-started" the euro area's recovery again and that the dollar's slide — making European products more expensive for Americans to buy — could dampen that demand if it continued. However, Klaus Regling, the top civil servant in the EU's economic affairs department, said the current exchange rate, while higher than forecast a few months ago, posed "no significant risks." The strong euro also supports domestic demand through lower inflation and making imports cheaper, he said. In its quarterly report, the Commission said business confidence in the 12-nation currency bloc had recovered to 2001 levels and consumer confidence was picking up. "Domestic conditions are turning more supportive ... a further pickup of growth in the first quarter of 2004 is likely," the Commission said in a statement. It said that the "sharp pickup in the U.S. economy is a positive signal for the euro area, but its impact should not be overestimated." Regling said growth in the fourth quarter would be slighter faster than forecast and would be in the range of 0.2 percent and 0.6 percent of gross domestic product. For the first quarter of 2004 he predicted growth between 0.3 percent and 0.7 percent for the first quarter of next year. "The recovery is now clearly visible," Regling told a news conference. Despite the overall upbeat outlook, the report's opening editorial penned by EU Economic Affairs Commissioner Pedro Solbes lambasted France and Germany for suspending enforcement of the budget pact underpinning the euro, to avoid sanctions for their excessive deficits. The report also expressed concern about slow productivity growth in the euro area, where gross domestic product per capita is only about 70 percent of the U.S. level. While attributing some of the long-running problems to efforts to reduce the continent's stubbornly high unemployment rate, it also said policy steps were needed, including more labor market deregulation and higher spending on education and research. story.news.yahoo.com.