EU Projects Slower Growth

Looks like we're not the only economy slowing down.

Economic growth across the eurozone will be lower in 2008 than estimated, while inflation will stay high, the European Commission has said.

Brussels now expects growth of 1.8% this year in the 15-nation eurozone.

This is lower than its November estimate of 2.2%, and below the growth rate of 2.7% recorded in 2007.

The Commission said credit market turmoil, slower US growth and surging oil prices would weigh on growth, while inflation would rise to 2.6%.

The increasing inflation is concerning, though not yet dire. What is their plan for improvement?

The Commission said that the deceleration in growth could be short-lived if the US picked up later in the year and lending costs and conditions eased.

Part of their plan seems to be stand back and hope the U.S. grows them out of it. But if Obama or Clinton get in the White House and start raising taxes and installing their socialized medicine programs, you will see a significant dampening effect on the U.S. economy.