Brussels, 26/01/2015 (Agence Europe) - With the economy of his country “at full speed”, the US Secretary of the Treasury, Jack Lew, highlighted the risk of deflation in Europe, in an interview with the Vice-President of the European Commission with responsibility for the Euro, Valdis Dombrovskis, on Monday 26 January.
According to Lew, the American economy is doing fairly well, but there is not the same growth in Europe. “The European economy is not growing in the way both the European and the global economy needs, and deflationary risks are evident”, he told the press. Recent measures to establish a European Fund for Strategic Investments (EFSI) in the framework of the Juncker investment plan and a budgetary policy conducive to growth whilst supporting countries undertaking structural reforms are “positive steps forward”. Lew, however, recommends that the Europeans draw inspiration from the decisive actions put in place by the United States in terms of monetary, budgetary and structural policy. “It is important that the EU pursue action in all the layers and not over-rely on one or another”, he stressed, adding that the EU needs a more flexible economy and more demand. Lew went on to stress that the transatlantic partnership treaty was a priority to his country and that talks on this subject were moving forward constructively.
Derivatives. When asked about derivatives, the Secretary of the Treasury said that the United States had come “a very long way” through transparency and the ability for the regulator to know what degrees of risks the institutions were exposed to. He stressed that the rest of the world had been “a bit slower” to make rules of this kind, and that the American aim was to secure the recognition of comparable standards. (MD)