There are increasing signs of gradual recovery in the euro zone that will strengthen in 2004 and beyond with inflation in check, European Central Bank Governing Council member Ernst Liebscher said on Thursday. "The conditions for a recovery in private demand are in place and there have been signs over recent months of a pickup in investment," Liebscher said in prepared remarks to be delivered to a lawyers conference on European Union expansion. Talking to reporters ahead of the speech, Liebscher said rising oil prices do not endanger recovery.
"I stick by my opinion that the gradual recovery remains intact and I have no reason to revise this opinion," he said. "In the short term, there could be an increase in inflation from oil prices as well as perhaps base effects, but nothing changes our scenario of inflation close to but under two percent."///