The risks surrounding this favourable outlook for economic growth are broadly balanced over the shorter term. At medium to longer horizons, the balance of risks remains on the downside, owing mainly to external factors.
These relate in particular to fears of a rise in protectionist pressures, the possibility of further increases in oil prices, concerns about possible disorderly developments owing to global imbalances and potential shifts in financial market sentiment. As regards price developments, as reflected in Eurostat’s flash estimate, annual HICP inflation was 1.9% in June 2007, unchanged from previous months.