BERLIN (MNI) – German Chancellor Angela Merkel said Wednesday that
she will talk with her U.S. counterparts at the upcoming G20 summit
about the Federal Reserve’s policy of flooding markets with liquidity.
“I will address this topic in a cooperative manner with the U.S.,”
Merkel told reporters here. “Nobody wants to see new bubbles forming” in
asset markets, the Chancellor reasoned, stressing that economic growth
needed to be more sustainable than in the past.
Merkel again warned that “the biggest danger for sustainable growth
is currently coming from protectionism in its different forms.” The
Chancellor underlined the importance to finally bring the Doha trade
negotiations to a successful end.
She again rejected a U.S. proposal to set limits on current account
imbalances. “Germany will not agree to any quantitative goals” regarding
current account surpluses or deficits, Merkel stressed.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: MT$$$$,M$G$$$,M$X$$$,MGX$$$,MFX$$$,MI$$$$]
