You know the economy is really bad when even royalty has to start cutting back. This year, the Queen of England is ushering in a new era of "Credit Crunch Couture," for a state banquet in Slovakia.

Her Majesty won't be buying a new dress for the event. Instead, she's opted to use the material from an old gown given to her over 20 years ago, to create a new outfit.

This is all in keeping with a royal tradition -- being thrifty. An official statement reads, "The Queen has always been thrifty and she is well-known for her culture of saving energy around the palace. Wherever possible, members of the Royal Family try to re-use what they have in order to save money where they can. They always make sure they switch off lights before leaving a room. The Princess Royal is well-known for recycling outfits and the Duke of Edinburgh has been reported as wearing the same pair of trousers that he had made 51 years ago."

We think it's pretty cool to see royal person being economical and suffering alongside us regular gals -- when hard times hit a fashionista knows that being creative is her best bet -- and it looks the Queen thinks so too.

Via Haute Concept.