EU economic policy doesn’t convince Washington

BY KARAFILLIS GIANNOULIS | APRIL 15, 2013 - 11:35AM

According to Bloomberg, the EU economic policy for growth hasn’t persuaded Washington. Therefore, the EU officials will be under pressure during the meeting of the Group of 20 finance ministers in Washington.

According to a draft statement obtained by Bloomberg news, the EU officials will tell that “the euro area has made further progress in the implementation of its comprehensive crisis-response strategy” and they expect “a mild recovery setting in toward mid-2013 and strengthening in the second half of 2013 and in 2014.”

Despite Bloomberg report about US worries in the EU economic policy, when US Treasury Secretary Jacob Lew met with German Finance minister Wolfgang Schaeuble on April 10, he didn’t pressure directly for an overall change in EU policy. However, Lew just stated his concern about global demand. The Treasury Secretary had said, i “made clear our concern that global demand needs to grow…Policies that would help to encourage consumer demand in countries that have the capacity would be helpful.” His rhetoric was in line with the Commission’s opinion that Germany and the rest of the EU Member States with budget surpluses, need to raise the national consumer demand.

According to the draft obtained by Bloomberg, the EU officials will acknowledge the fact that the European Economy remains fragile and is in need of more economic reforms. According to financial website, the EU economic policy will still be based in deregulation, promotion of macroeconomic balance and the setup of a single Eurozone bank supervisor.  

In addition, the EU officials will intend to advise US and Japan to perform credible fiscal consolidation plans, due to their stimulus economic policies. Both the central banks of US and Japan followed expansionary monetary policies in order to support their national economies. However, the EU economic policy remained unchanged.

The President of the European Central Bank (ECB), Mario Draghi didn’t announce any stimulus plan in Dublin but he stressed that the ECB is determined to make sure that all the funds that have been injected into the economy are promoting the real economic sector.

http://www.neurope.eu/article/eu-economic-policy-doesn-t-convince-washington