The European Commission has cut its 2008 economic growth forecast for the 13-nation euro zone to 2.2% from 2.5%, citing financial market turbulence and soaring oil prices.
But the Commission lifted its 2007 estimate to 2.6% from 2.5% despite concerns the economy was being hit by rising credit costs caused by financial market volatility, record oil prices and slowing US growth.
EU Economic and Monetary Affairs Commissioner Joaquin Almunia said: 'Clouds have clearly gathered on the horizon with this summer's turbulence in the financial market, the US slowdown and the ever-rising oil prices.'
