Standard estimates of the impact of oil prices on the euro zone economy are that a 10 percent price hike dents annual growth by some 0.2 percent in the ensuing three years, with disagreement over whether the hit is greater at the start or at the end.
However, these projections do not take into account the euro/dollar exchange rate and may underestimate the impact at a time of widespread austerity. Nor do they reflect potential differences across euro zone countries.
In dollar terms, oil prices are still some 13 percent short of the $147.50 per barrel Brent peak hit in July 2008. However, in euro terms, oil prices surpassed all-time highs last month.