- Euro bloc needs to invest more in infrastructure
- More G7 work needed on bank regulation
- Says there are no differing vies in German government on growth pact
- There’s no substitute for structural reforms in EU
- Sees signs of developments in German property prices that look dangerous
- In the long run liquidity is too great and interest rates are too low
Wolfgang Schaeuble is meeting US Treasury sec Jack Lew in Berlin
Lew says;
- Russia must support peace plan in Ukraine instead of destabilising situation
- International community prepared to punish Russia further if it does not show more constructive approach in Ukraine
- Says US expects much stronger Q2/H2 economy
- Both US and Germany agree that more could be done to boost growth
- We continue to believe there is a demand problem in the world
- Policy makers should do more to boost demand
- US housing values returning to pre-crisis levels, would like to see an increase in demand
