EU finance ministers to talk over slowing US economy
European Union finance ministers open two days of talks on Monday to discuss the United States' slowing economy, feeble dollar and massive current account deficit as major problems for the EU and the rest of the world.
By Agencies |
BRUSSELS: European Union finance ministers open two days of talks on Monday to discuss the United States' slowing economy, feeble dollar and massive current account deficit as major problems for the EU and the rest of the world.
Europe is starting to feel the bite as the US dollar plummets, making French wine, Italian fashion and German cars expensive purchases for the EU's main export market in the US.
Last week, the employers federation BusinessEurope said that, by crossing 1.40 against the US dollar, the euro exchange rate had reached a "pain threshold" for European companies. It also complained the euro was appreciating too fast against the Chinese yuan and Japanese yen.
While echoing their concern, the finance ministers of the 13 euro-zone nations will reiterate Europe is an innocent victim of others and that the euro-dollar exchange rate issue is part of a broader set of problems triggered by China's trade surplus and America's huge debts that require concerted steps to undo.
Luxembourg's Prime Minister Jean-Claude Juncker set the tone last week when he said the Europeans should not have to bear the consequences of other countries' inaction.
Finance ministers from all 27 EU nations tomorrow will lift a caution for London that was imposed when it ran a budget deficit above the EU's recommended three per cent of gross domestic product.
The recent economic surge should allow Britain to cut that to 2.4 per cent in the 2008-2009 financial year.
Europe is starting to feel the bite as the US dollar plummets, making French wine, Italian fashion and German cars expensive purchases for the EU's main export market in the US.
Last week, the employers federation BusinessEurope said that, by crossing 1.40 against the US dollar, the euro exchange rate had reached a "pain threshold" for European companies. It also complained the euro was appreciating too fast against the Chinese yuan and Japanese yen.
While echoing their concern, the finance ministers of the 13 euro-zone nations will reiterate Europe is an innocent victim of others and that the euro-dollar exchange rate issue is part of a broader set of problems triggered by China's trade surplus and America's huge debts that require concerted steps to undo.
Luxembourg's Prime Minister Jean-Claude Juncker set the tone last week when he said the Europeans should not have to bear the consequences of other countries' inaction.
Finance ministers from all 27 EU nations tomorrow will lift a caution for London that was imposed when it ran a budget deficit above the EU's recommended three per cent of gross domestic product.
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The recent economic surge should allow Britain to cut that to 2.4 per cent in the 2008-2009 financial year.
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