European Union finance ministers considered the ever-strengthening euro against the dollar Monday amid appeals for Washington to rein in its budget
Published:
7 December 2004 y., Tuesday
European Union finance ministers considered the ever-strengthening euro against the dollar Monday amid appeals for Washington to rein in its budget and current account deficits to stop the slide of the U.S. currency.
"I think it is unacceptable that Europe is paying the bill for major imbalances" in the United States, said Austrian Finance Minister Karl-Heinz Grasser on arriving at the monthly meeting of EU finance ministers.
He said it was important for Europe "to engage in a serious and intensive debate" with the Bush administration on the weakening dollar.
"The United States needs to send a clear signal to reduce their deficits," said Grasser.
France's new finance minister, Herve Gaymard, made a similar plea earlier Monday.
Washington has so far declined to oblige Europe, arguing that exchange rates should be determined by the markets and it is up to EU governments to spur consumer demand to ease their reliance on exports.
The euro hovered near $1.35 mark Monday, maintaining the fears of many officials that Europe's fledgling economic recovery will be hurt. The euro's rise against the dollar has made European exports more expensive, meaning diminishing sales in the United States and Asian markets, especially China, that peg their currencies to the dollar.
European Central Bank President Jean-Claude Trichet last week ruled out a cut in interest rates to help offset the negative impact of the rising euro -- which he has called "brutal."
The EU finance ministers also debated the impact of oil prices that climbed back above $43 a barrel and plans by the EU head office to start legal proceedings against Greece for sloppy bookkeeping and underreporting its budget deficit by billions of euros since 1997.
Šaltinis:
nynewsday.com
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
Most EU countries continue to meet deadlines for incorporating single market rules into national law, contributing to economic growth and job creation.
more »
Japanese officials unveil their new bullet train, capable of travelling at speeds of 320 km per hour (198 miles per hour).
more »
The first International Security Technology Exhibition, KIPS 2011, will be held on 23-26 February 2011 in Kiev (Ukraine). The motto of the exhibition is ‘There can never be too much security!’
more »
The world's highest restaurant opens in Dubai, United Arab Emirates, located 400 metres above ground in Burj Khalifa, the world's tallest tower.
more »
The rights of consumers will be clarified and updated, whether they shop at a local store or buy goods on line, under new EU rules as amended by the Internal Market Committee on Tuesday.
more »
MEPs on Wednesday gave their green light for the Council to conclude an Interim Economic Partnership Agreement with Papua New Guinea and Fiji, two countries of the Pacific Region with significant exports to the EU.
more »
Report sets 10 priorities for tackling the bloc's main economic challenges, launching the first ever ‘European semester'.
more »
China's first capsule hotel ready to open its doors in Shanghai, aims to capture slice of booming leisure budget travel market.
more »
Declaration by Michel Barnier on the start of three new authorities for supervision.
more »
On 1 January, Estonia adopted the euro as its official currency and the changeover is running smoothly and according to plan.
more »