–Meeting Draft Conclusions Have No Mention Of Forex Rates

BRUSSELS (MNI) – Priority should be given to restoring financial
market confidence and preserving the momentum of the global economic
recovery, European and Asian heads of state and government said at the
end of a two-day meeting held here on Monday and Tuesday, a draft of the
summit conclusions shows.

“We note that, as a result of the extraordinary and well
coordinated stimulus packages, the global economic recovery continues,”
the heads of state and government said, according to a draft document
obtained by Market News International.

“We agree that priority should be given to restoring market
confidence and preserving recovery momentum,” it said.

The leaders said they “recognize that the economic crisis has
exposed the weaknesses in the global economic and financial system and
has highlighted the interdependence among the world’s economies.”

“We welcome the actions taken in Asia to sustain a robust recovery
and maintain the momentum towards economic growth while containing
inflationary pressures,” the draft said.

The statement also said the leaders “welcome the measures taken by
European members to ensure a proper functioning of the market for
sovereign debt and their readiness to go further if warranted.”

“We encourage the pursuit of credible clearly communicated plans
for fiscal consolidation, delivering fiscal sustainability while also
protecting economic growth, duly differentiating the speed and timing of
consolidation for national circumstances,” it said.

The two sets of draft conclusions prepared ahead of the summit’s
conclusion didn’t mention foreign exchange rates, a priority topic for
Europe’s leaders who feel that Chinese officials should be doing more to
enhance the flexibility of the renminbi.

EU economic policymakers failed to make any headway in securing
reassurances from China’s officials at a set of bilateral meetings on
Monday and Tuesday, securing only a reiteration of a promise made in
June that China would “proceed further with reform of the renminbi
exchange rate regime and to enhance the renminbi exchange rate
flexibility.”

–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com

[TOPICS: MT$$$$,M$$FX$,M$$EC$,M$X$$$,M$$CR$,MGX$$$]