Europe's economic woe 'is over'

Anti-capitalist protesters took to the streets of Seville

European Union leaders have confidently declared the region's economic slowdown is over.

"The recent downturn in economic activity has ended," the 15 leaders said in their concluding statement after the two-day Seville Summit.

The European economy is set to reap the benefits of sound policies

EU leaders

The leaders also predicted that battered economies such as Germany and France are in line for a fall in unemployment.

"The European economy is set to reap the benefits of sound policies and ambitious reform, which will underpin the recovery of growth and job creation," said the statement.

The bold declaration was greeted with caution by some economists, with recent evidence suggesting sliding business confidence in Italy, ailing consumer spending in France, and almost stagnant growth in Germany and the UK during the first three months of the year.

Peaceful protests

In other economic decisions at the summit, leaders agreed to push ahead with plans to unify the European market for financial services and facilitate the development of digital television and the new generation of mobile phone networks.

The leaders also called for better accounting standards in order to prevent an Enron-type scandal in Europe, and agreed to prise open energy markets.

At a meeting of finance ministers, all 15 EU members agreed to balance their budgets by 2004 under the stability pact signed five years ago.

But France admitted that it may only come "close" to achieving the target due to the tax cuts promised by President Jacques Chirac in his recent election campaign.

Thousands of anti-capitalist demonstrators marched through the streets of Seville on Saturday.

But there were no signs of the violent clashes that have dominated other international gatherings recently, including the EU summit in Barcelona in March.