EU tackles budget deficits as U.S. goes for growth
European finance ministers underlined a wide gap on Tuesday between their response to a global economic downturn and the spend-easy U.S. approach, calling for budget discipline and vigilance on inflation. Europe remains fixated on deficit-cutting rules and curbing price rises, but U.S. President George W. Bush is set to sign into law on Wednesday a $152 billion rescue package full of tax rebates and business incentives to revive a flagging economy. That divergence set the tone for Tuesday's meeting of ministers from the 27 European Union nations, many of which could be vulnerable if what is feared to be an unfolding U.S. recession spreads across the Atlantic. German Finance Minister Peer Steinbrueck spelled out the twin pillars of budget discipline and inflation-fighting on arrival for the talks, telling reporters: "Germany has long been the locomotive making a disproportionate contribution to keeping down inflation in Europe. Others are also obliged to do so."
No comments:
Post a Comment