US economic slowdown affects Europe growth: French PM

WASHINGTON: French Prime Minister Francois Fillon insisted here Friday that the French and European economies are sound, but that the US economic slowdown will effect Europe's growth.

"France and Europe are in an intermediate situation," he told reporters. "Our fundamentals are globally sound in the euro zone," he said. "But the slowing down of growth in the United States, the overvaluation of the euro and the rising energy and food prices will weigh on European growth."

"It is obvious that when the American economy is not going well, all of the world economy feels it, particularly the European economy," said Fillon, whose country takes over the EU's rotating presidency for six months on July 1.

"It is a worrisome situation," he said. "The American crisis has repercussions on growth in the euro zone."

Fillon arrived in Washington this week to meet with US Treasury Secretary Henry Paulson and Federal Reserve chairman Ben Bernanke to discuss the credit crunch sparked by the US subprime crisis and the dollar-euro exchange rate.

Fillon, who is accompanied by Economy Minister Christine Lagarde and Agriculture Minister Michel Barnier, will also meet with Dominique Strauss-Kahn, the French head of the International Monetary Fund.