Bloomberg.com: Trichet's Europe Outpaces U.S., Reaping Reward of Risk Aversion - by Simon Kennedy and John Fraher
Trichet's Europe Outpaces U.S., Reaping Reward of Risk Aversion - by Simon Kennedy and John Fraher
As the U.S. teeters on the brink of a recession after the end of a five-year housing boom, growth in the 15 nations that share the euro is poised to outpace the American economy for a second straight year. The region's resilience lets Trichet, who today presides over the European Central Bank's monthly policy meeting, focus on fighting inflation instead of cutting interest rates. Because Europeans save more than Americans and splurge less on houses and stocks, the continent is better placed to withstand the global credit squeeze without the need for lower borrowing costs.
``To be thrifty is a good thing and definitely a plus for the European economy in this tough period,'' said Jean-Michel Six, chief European economist at Standard & Poor's in London. ``The attitude to debt and credit is clearly very different between the U.S. and Europe.''
Labels: EU, European Economy, Trichet
