ECOFIN: Juncker: No Medium-Term Risks To Price Stability -2
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ECOFIN: Juncker: No Medium-Term Risks To Price Stability -2 ECB President Jean-Claude Trichet attended the meeting of Euro Group finance ministers, but didn't appear at the press conference. Juncker said the finance ministers agreed that with the euro-zone economy experiencing its best period of growth since 2000 and tax revenues rising, governments should attempt to reduce their budget deficits further. He added that the Euro Group would propose to a wider meeting of finance ministers from the European Union Tuesday - known as Ecofin - that excessive deficit procedures against Germany and Greece should be concluded. "The improvement in the fiscal situation has been impressive," European Commissioner for Economic and Monetary Affairs Joaquin Almunia said of Germany. "Now the question is whether they can continue the consolidation." Almunia, who was speaking alongside Juncker at the press conference, was less effusive about Greece's progress, urging the government to do more to bring down its budget deficit. "In the case of Greece the discussion was not so easy," Almunia said. "The correction was not as large as in Germany." Almunia and Juncker said the Euro Group will discuss the new French government's budget plans at their next meeting in July. Recently elected President Nicolas Sarkozy has proposed some cuts to income taxes that are expected to reduce government tax revenues. Juncker said he had no doubt France would abide by the European Union's budget rules, while Almunia said he expected the new government to continue to reduce the public sector debt. "I assume ... France is standing by its commitment to reduce its debt," Almunia said. He added that Italy's finance minister had assured the Euro Group that his government would speed up its fiscal consolidation. Juncker said the finance ministers had not discussed the euro's exchange rate. The currency is at an all time high against the Japanese yen. It has weakened against the U.S. dollar in recent weeks, but remains strong by historic standards. Juncker also said the Euro Group had agreed to back the entry of Malta and Cyprus into the euro zone. Formal approval must be given by the wider Ecofin and E.U. heads of government, but the Euro Group's backing is a key step towards the two Mediterranean islands becoming members of the currency area in January 2008. "The discussion has been very easy," Almunia said.
ECOFIN: Juncker: No Medium-Term Risks To Price Stability -2 ECB President Jean-Claude Trichet attended the meeting of Euro Group finance ministers, but didn't appear at the press conference. Juncker said the finance ministers agreed that with the euro-zone economy experiencing its best period of growth since 2000 and tax revenues rising, governments should attempt to reduce their budget deficits further. He added that the Euro Group would propose to a wider meeting of finance ministers from the European Union Tuesday - known as Ecofin - that excessive deficit procedures against Germany and Greece should be concluded. "The improvement in the fiscal situation has been impressive," European Commissioner for Economic and Monetary Affairs Joaquin Almunia said of Germany. "Now the question is whether they can continue the consolidation." Almunia, who was speaking alongside Juncker at the press conference, was less effusive about Greece's progress, urging the government to do more to bring down its budget deficit. "In the case of Greece the discussion was not so easy," Almunia said. "The correction was not as large as in Germany." Almunia and Juncker said the Euro Group will discuss the new French government's budget plans at their next meeting in July. Recently elected President Nicolas Sarkozy has proposed some cuts to income taxes that are expected to reduce government tax revenues. Juncker said he had no doubt France would abide by the European Union's budget rules, while Almunia said he expected the new government to continue to reduce the public sector debt. "I assume ... France is standing by its commitment to reduce its debt," Almunia said. He added that Italy's finance minister had assured the Euro Group that his government would speed up its fiscal consolidation. Juncker said the finance ministers had not discussed the euro's exchange rate. The currency is at an all time high against the Japanese yen. It has weakened against the U.S. dollar in recent weeks, but remains strong by historic standards. Juncker also said the Euro Group had agreed to back the entry of Malta and Cyprus into the euro zone. Formal approval must be given by the wider Ecofin and E.U. heads of government, but the Euro Group's backing is a key step towards the two Mediterranean islands becoming members of the currency area in January 2008. "The discussion has been very easy," Almunia said.
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