BBC Blames United States for Slow EU Growth

The BBC shows their economic ignorance and blames the U.S. for projected slower growth in Europe.

Europe 'set for slower growth'

Economic growth across the EU will slow in 2008 because of a weaker US economy and problems in global financial markets, the European Commission says.

Brussels is now forecasting 2.4% growth in the 27-member union in both 2008 and 2009, compared to 2.7% this year.

Later, they focus their ire on the US housing market:

European banks have not been immune to the global credit crisis triggered by the slump in the US housing market.

First, growth of over 2% is a good thing. You need a 2% growth just to keep up with general population growth around the world.

Second, parts of Europe have no population growth or are actually decreasing, so that contributes to the lower growth expectations, which has absolutely nothing to do with the US.

Third, I don't recall the BBC ever giving the US any credit when things are pointing up.

Fourth, European banks were making a lot of their own bad loans too. The United States does not have a monopoly on that score.

Then comes this comment:

In its twice-yearly economic forecast, Brussels said it now expected inflation in the eurozone to remain at about 2% this year, rising slightly to 2.1% next year.

It is forecasting the average oil price will rise from $70.60 a barrel this year to $78.80 in 2008.

With crude trading in the mid $90's as we speak, they must be expecting a 15% to 20% drop in crude oil prices. That would accelerate the economy, not slow it down.

This article is a great example of what little grasp the BBC editors and writers have on economics.