Memo: Preparation of Eurogroup and Economic and Finance Ministers Council, Brussels, 3 and 4 March 2008 (Amelia Torres, Oliver Drewes, Maria Assimakopoulou, Cristina Arigho)

The meeting 0n 3 March, 2008, is expected to start with a presentation by Commissioner Almunia of the Commission interim economic forecasts published on 21 February (see IP/08/274). The euro-area economy is expected to remain fairly resilient in the face of the numerous and sizeable headwinds (US slowdown, financial market turbulence, high commodity prices), with GDP growth forecast to be 1.8% in 2008. The projection for HICP inflation, on the other hand, was revised up to 2.6% for 2008. The forecasts noted that in the absence of further shocks to food and energy prices, inflation is expected to return to more normal levels in the last quarter of 2008, although the increase noted in inflation expectations is a source of concern in this respect. For latest data and surveys see Key Indicators for the Euro Area