Wednesday

19th Sep 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.

'Every group split' ahead of EU copyright vote

Political groups in the European Parliament are split about how to vote for a directive that would reform the EU's copyright regime - amid warnings that freedom of expression and creators' rights are at risk.

News in Brief

  1. EU investigating BMW, Daimler and VW 'collusion'
  2. Spain wants special Gibraltar chapter in Brexit deal
  3. Italy cancels Vienna talks over South Tyrol 'dual citizenship'
  4. Britain will not accept Brexit deal with Irish Sea border
  5. Slovakia seeks witness to journalist killing
  6. Finland's Stubb considers running for EU commission job
  7. Romania ponders anti same-sex marriage referendum
  8. EU lawyers back Slovenia in Croatia border dispute

Opinion

Aid, migration and the next EU budget

Th next EU budget is the most pivotal opportunity to advance a vision for Europe rooted in human rights and that builds a Union that works for all its members.

Stakeholders' Highlights

  1. NORDIC COUNCIL OF MINISTERSThe Nordic gender effect goes international
  2. NORDIC COUNCIL OF MINISTERSPaula Lehtomaki from Finland elected as the Council's first female Secretary General
  3. NORDIC COUNCIL OF MINISTERSNordic design sets the stage at COP24, running a competition for sustainable chairs.
  4. Counter BalanceIn Kenya, a motorway funded by the European Investment Bank runs over roadside dwellers
  5. ACCACompany Law Package: Making the Best of Digital and Cross Border Mobility,
  6. IPHRCivil Society Worried About Shortcomings in EU-Kyrgyzstan Human Rights Dialogue
  7. UNESDAThe European Soft Drinks Industry Supports over 1.7 Million Jobs
  8. Mission of China to the EUJointly Building Belt and Road Initiative Leads to a Better Future for All
  9. IPHRCivil society asks PACE to appoint Rapporteur to probe issue of political prisoners in Azerbaijan
  10. ACCASocial Mobility – How Can We Increase Opportunities Through Training and Education?
  11. Nordic Council of MinistersEnergy Solutions for a Greener Tomorrow
  12. UNICEFWhat Kind of Europe Do Children Want? Unicef & Eurochild Launch Survey on the Europe Kids Want

Latest News

  1. EU promotes 'Egypt model' to reduce migrant numbers
  2. Tensions mount over Kosovo-Serbia deal
  3. New book: Why war is coming
  4. EU parliament will not budge on office expenses
  5. Why Orban's project to reshape EU politics will be unsuccessful
  6. 10 years after Lehman Brothers what has changed for EU consumers?
  7. Sefcovic launches bid to be EU Commission president
  8. Is Russia blackmailing the Council of Europe?

Join EUobserver

Support quality EU news

Join us