BRUSSELS, 09/05/06 - The European economy will show strong growth this year, but this will already have passed its peak in 2007. The Netherlands is expected to outperform, after bringing up the rear for years, according to the European Commission's spring forecasts presented yesterday.

For the 12 eurozone countries, the Commission is projecting average GDP growth of 2.1 percent this year, 0.2 percentage points above its forecast six months earlier. In the EU as a whole, GDP growth is seen reaching 2.3 percent, partly thanks to tempestuous growth in Eastern Europe.

The Commission is less optimistic for 2007, with projected eurozone growth of 1.8 percent, 0.3 points lower than its previous forecast. In the EU as a whole, next year's GDP growth is put at 2.2 percent.

For the Netherlands, the near future looks good. The Commission is forecasting GDP growth of 2.6 percent this year, a touch below the most recent Central Planning Bureau (CPB) forecast of 2.75 percent. In 2007, Brussels also sees a growth rate of 2.6 percent, whereas the CPB is projecting 3 percent.

The eurozone slowdown in 2007 will be partly due to Germany, the biggest economy in Europe, where a sharp VAT increase is in prospect. German consumers will therefore make their big purchases this year instead of next.