Iraqi war could worsen world economy: EU trade envoy

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The US-led war in Iraq could worsen the already fragile world economy, EU Trade Commissioner Pascal Lamy warned yesterday, as coalition forces pushed closer to Baghdad.

"I and a few others are trying to make sure that these geo-political tensions do not spill over into trade, investment and the economy," Lamy told reporters after addressing the Federation of Malaysian Manufacturers.

"We already have a world economy situation that is not so promising," he said.

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