The European economy is sighting towards a more optimistic future. According to Jean-Claude Trichet, President, European Central Bank the growth forecast in the European Union has been raised from a meager
1% to a 1.6%. Though, Mr. Trichet has further stated that there is a possibility of the growth to slow down by 2011 to 1.4%.

Goldman Sachs has though raised expectations by stating that possible growth in 2011 could be around 2.4% while for the current financial year it could possibly be around 1.7%.

Not to be carried away by popular fervor Jürgen Michels, Citigroup Global Markets stated that they don't expect growth rates to be phenomenal and stated that growth for this year would be somewhere around 1.4% whereas for the following year it would round-off to around 1.2%.

Mr. Trichet has further informed that interest rates would be kept at a low of 1% which would help countries in a quandary like Spain who are still not out of the thick of the woods, though it would at the same conjunction worry the likes of Germany who have seen phenomenal recovery over the year.

Germany has recorded a growth of about 9% over the second quarter of this year with a declining unemployment which has been reduced to 7.6%.