BRUSSELS (MNI) – Global exchange rates should reflect economic
fundamentals, the European Commission’s top economic official, Olli
Rehn, said on Tuesday.
“The European Union works for a strong and stable international
financial system in which exchange rates should reflect economic
fundamentals,” Rehn told reporters following a meeting of European Union
finance ministers in Luxembourg on Tuesday. “This is an essential
element of the G20, and of the world — to rebalance global growth for
the sake of sustainable recovery and job creation.”
Rehn warned that “pre-crisis imbalances are re-emerging, which
threaten a global recovery and job creation.”
He called on the G20 group that will meet later this week in Korea
to “restore the sense of unity and pursue effective international policy
coordination to rebalance global growth.”
Surplus countries, Rehn said, should reinforce domestic demand and
the deficit countries should boost exports.
“All countries should do their part to rebalance global growth,” he
said.
Rehn observed that the U.S. economic recovery “appears to be
running out of steam.”
“In Europe the recovery is in progress,” he said, adding that “a
rebalancing of growth is taking place.”
“Employment is starting to recover in most parts of the EU, not
everywhere but in most parts,” Rehn said.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
[TOPICS: MT$$$$,M$$FX$,M$$EC$,M$X$$$,M$$CR$,MGX$$$]
