European Union finance ministers considered the ever-strengthening euro against the dollar Monday amid appeals for Washington to rein in its budget

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.