BRUSSELS (AFP) - The European Commission said it was standing by its eurozone economic growth forecast for 2004 of about two percent, but was "more prudent" regarding 2005.
Spokesman Gerassimos Thomas said the commission, the European Union's executive arm, had revised its 2004 forecast upwards in the spring to "something round about the two percent mark" from 1.7 percent previously, and "that holds" still despite the surge in oil prices.
"A lot of people ask whether the upward review for 2004 is going to mean an upward review in the growth figure for 2005, and here we have to be a little more prudent," Thomas said.
"We've got to see which way oil goes," he said.
He said the commission was "not reviewing down, but is not reviewing up yet" its forecast of 2.3 percent for 2005 economic growth.
On Tuesday, European Economic and Monetary Affairs Commissioner Joaquin Almunia said that if oil prices continued to soar it could weigh on the European economy, causing higher inflation and lower growth.