Wednesday

21st Nov 2018

US to chide Germany on eurozone growth at G7 meeting

US treasury secretary Jack Lew will repeat calls for Germany to stimulate demand in order to drag the eurozone out of recession, according to US government sources.

Speaking with reporters in Washington on Wednesday (8 May) ahead of the meeting of G7 finance ministers in the UK on Friday (10 May), a senior US Treasury official commented that Lew's main message would be to urge the eurozone to "reinvigorate growth and domestic demand."

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

  • Wolfgang Shaeuble (l) has in the past said that Germany does not want to be 'graded' by the US (Photo: Joerg Rueger/German ministry of finance)

The official added that "Europe's surplus countries hold the key" to kickstarting the eurozone economy and increasing employment, highlighting the reduction of Germany's 7 percent export surplus.

Meanwhile, the eurozone should "recalibrate fiscal consolidation programmes" and avoid "excessively sharp consolidation."

European leaders in the G7 are keen to focus the informal discussions on automatic exchange of information on foreign-held bank accounts as part of wider talks on combating tax evasion and avoidance.

The US, meanwhile, has made it clear that its priority is bolstering Europe's fragile economy.

The US stance is likely to meet resistance from the German government, which is reluctant to increase wages and stimulate domestic spending, preferring instead to keep wages low to encourage manufacturing and exports.

But Berlin is under pressure to reduce its 7 percent export surplus. In April, Lew used his first trip to Berlin as Treasury Secretary to urge counterpart Wolfgang Schaueble to put in place measures to stimulate consumer spending.

For his part, Schaueble commented that neither the US or Germany should try to give "lessons" or "grades" to each other.

Last week the EU's Economic Affairs Commissioner Olli Rehn, regarded as one of the bloc's leading hawks on deficit cutting, indicated that France and Spain would be given an additional two years to reduce their deficits to the 3 percent threshold laid out in the EU's budget rules.

Rehn has also in recent weeks sought to underline that the pace of deficit reduction will slow in 2013 to an average of 0.75 percent of GDP, down from 1.75 percent in 2012.

Italy defiant on budget on eve of EU deadline

Italy would be committing economic "suicide" if it fell in line with EU rules, its deputy leader has said, in a sign that Rome has little intention of bowing to pressure ahead of Tuesday's budget deadline.

News in Brief

  1. Hungary grants asylum to ex-Macedonia PM
  2. UK court rules against government in Article 50 case
  3. May to meet Juncker on Wednesday to finalise Brexit deal
  4. Future of EU's Mediterranean naval mission in doubt
  5. EU budget talks for 2019 collapse
  6. EU mulls new Russia sanctions over Ukraine 'elections'
  7. EU farm chief 'confident' sugar prices will recover
  8. Researcher: EU expert groups still imbalanced and opaque

Stakeholder

An open China brings opportunities to Europe

Some 60 years ago, the first major World Fair after World War II was held in Brussels. Sixty years on, China International Import Expo (CIIE), the first world expo dedicated to expanding imports, will open in Shanghai, China.

Stakeholders' Highlights

  1. NORDIC COUNCIL OF MINISTERSTheresa May: “We will not be turning our backs on the Nordic region”
  2. International Partnership for Human RightsOpen letter to Emmanuel Macron ahead of Uzbek president's visit
  3. International Partnership for Human RightsRaising key human rights concerns during visit of Turkmenistan's foreign minister
  4. NORDIC COUNCIL OF MINISTERSState of the Nordic Region presented in Brussels
  5. NORDIC COUNCIL OF MINISTERSThe vital bioeconomy. New issue of “Sustainable Growth the Nordic Way” out now
  6. NORDIC COUNCIL OF MINISTERSThe Nordic gender effect goes international
  7. NORDIC COUNCIL OF MINISTERSPaula Lehtomaki from Finland elected as the Council's first female Secretary General
  8. NORDIC COUNCIL OF MINISTERSNordic design sets the stage at COP24, running a competition for sustainable chairs.
  9. Counter BalanceIn Kenya, a motorway funded by the European Investment Bank runs over roadside dwellers
  10. ACCACompany Law Package: Making the Best of Digital and Cross Border Mobility,
  11. International Partnership for Human RightsCivil Society Worried About Shortcomings in EU-Kyrgyzstan Human Rights Dialogue
  12. UNESDAThe European Soft Drinks Industry Supports over 1.7 Million Jobs

Latest News

  1. Boycott threats mount on eve of Interpol election
  2. EU parliament to renege on transparency promises
  3. Cyprus and Greece to create EU spy academy
  4. MEPs likely to delay vote on greater transparency
  5. Cold shoulder for Franco-German euro budget plan
  6. Whistleblower: Danske Bank gag stops me telling more
  7. Spain raises Gibraltar, as EU and UK talk post-2020 relationship
  8. Panic is not answer to EU's security challenges

Join EUobserver

Support quality EU news

Join us