THE euro has “screwed everybody”, Silvio Berlusconi, Italy’s Prime Minister, said yesterday as he sought to exploit rising hostility to the single European currency to attack Romano Prodi, his political opponent.
Signor Berlsuconi told a conference of his Forza Italia party that “Prodi’s euro screwed everybody”, as he tried to pin blame for the damaging perceived impact of the currency on the terms Signor Prodi negotiated for Italy’s participation when he was Prime Minister.

 Signor Prodi, until recently President of the European Commission, now leads Italy’s centre-Left opposition and is the biggest threat to Signor Berlusconi in elections next year.

The latest signs of political stresses over the euro came as the National Institute of Economic and Social Research, the British think-tank, said national growth rates were set to continue to diverge in the 12-country eurozone.

Germany was now benefiting from stronger exports, and France and Spain were set for robust expansions next year, while Italy and the Netherlands remained mired in recessions, the institute said.

The institute’s world forecasts see global growth slowing sharply to 4.2 per cent this year, from 5.1 per cent in 2004, as oil prices stay high, adding to inflationary pressure. The eurozone economy is expected to grow 1.5 per cent this year, and 2 per cent next, against US expansion of 3.9 and 3.8 per cent.