European economy still lags behind US[fr] 

2006 was definitely a year of recovery for Europe’s economy. Latest figures show that eurozone growth last year was at least 2.6% (2.8% for the whole EU), against just 1.4% in 2005. 

The jobless rate in the 12-country eurozone has also fallen to 7.5% – the lowest level since at least the early 1990s – according to figures published on 31 January by the EU's statistical agency. 

Nevertheless, these record figures will not suffice to narrow the long-standing gap with the United States. 

Indeed, figures published on 31 January by the US government reveal that US GDP grew by 3.4% in 2006, comfortably outpacing the EU. The jobless rate stands at just 4.5%. 

Since launching its Lisbon strategy aimed at making the EU "the most competitive and dynamic economy by 2010", the bloc has succeeded in outperforming the US only in 2000 and 2001. 

Nevertheless, Europe's prospects are looking up and latest economic forecasts from the Commission show European economic growth overtaking America's in 2007. 

Economists were divided over these figures, forecasting that a decline in the global economy, rises in oil prices and a 3% hike in German VAT rates would slow down European growth in 2007. However, latest figures give rise to increased optimism, showing that the German VAT raise has had only a negligible effect on Europe's largest economy and that the global economy is proving to be stronger than expected.