No more than a cyclical slowdown

This year, for the first time in a decade, the European economy is poised to deliver better GDP growth than America. In these days of increased globalisation and liberalisation, Europe cannot escape the effects of the US slowdown. Any sharp fall in US economic activity will have an impact on the region, and this is reflected in recent cuts in eurozone GDP estimates. Even European Central Bank members who had stubbornly proclaimed that the region could avoid the worst of the US shakeout are now recognising a correlation between the European and US economies. Revised consensus forecas...