Growing Divide

Once again the prospects for the Eurozone look poor.

EU eurozone growth forecasts have been cut from two per cent to 1.6 per cent in 2005 following an economic slowdown in late 2004.

Not everyone is suffering though.

Growth in wider Europe outside the eurozone is stronger, forecast at two per cent, buoyed by expanding economies in the new EU, the UK, Sweden and Denmark.

The divide between New and Old Europe seems to exist as much in economics as in foreign affairs.