Kosovo Hobbles The New Europe

War has come to Europe once again, transforming a year that began in triumph into one besieged by anxiety. The brutal conflict, just a day's drive from Munich or Milan, is undermining the recently launched euro, helping to drive it down toward parity with the dollar. And if it develops into a full-fledged ground war, the battle over Kosovo could cut as much as half a point off Europe's economic growth this year. Already running at an anemic 2% annual rate--half that of the U.S.--European growth can ill afford the economic undertow from Kosovo.

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