US Urges EU to Do More to Stimulate Its Economy
LONDON (Financial Times) - The US and Canada have urged the EU to resolve its internal political differences and do more to stimulate its economy, amid concerns the bloc could impede a global recovery as geopolitical tensions and financial market risks grow.
"If the efforts to boost demand are deferred for too long there is a risk that the headwinds get stronger,” Jack Lew, US Treasury secretary, said on Sunday at a G20 meeting of finance ministers and central bankers.
He said the US had "philosophical differences with our friends in Europe” and called on European countries to agree to boost short-term demand to stimulate growth.
The pressure exerted by the EU’s international partners comes amid a fractious debate within the eurozone over the best way to boost growth. France and Italy are pushing for fiscal stimulus while Germany is an advocate of budgetary restraint.
Mario Draghi, president of the European Central Bank, last month urged governments to match the central bank’s efforts to revive the economy with growth-boosting measures of their own. Mr Draghi urged member states with room to spend, such as Germany, to raid their fiscal coffers, while at the same time demanding France and Italy revamp their economies through labor market reforms.
He said the US had "philosophical differences with our friends in Europe” and called on European countries to agree to boost short-term demand to stimulate growth.
The pressure exerted by the EU’s international partners comes amid a fractious debate within the eurozone over the best way to boost growth. France and Italy are pushing for fiscal stimulus while Germany is an advocate of budgetary restraint.
Mario Draghi, president of the European Central Bank, last month urged governments to match the central bank’s efforts to revive the economy with growth-boosting measures of their own. Mr Draghi urged member states with room to spend, such as Germany, to raid their fiscal coffers, while at the same time demanding France and Italy revamp their economies through labor market reforms.