Brussels, 12/02/2001 (Agence Europe) - Eurogroup, which met in Brussels yesterday, expressed realistic confidence in the growth of the euro-zone's economy. Its president-in-office, Belgian Finance Minister Didier Reynders, confirmed to the press the "Eurogroup's capacity to resist the slowdown in the economy of the United States and the rest of the world". He stressed the importance of a strong euro for supporting growth of the euro area. Mr Reynders will forward this analysis to the meeting of the G7 finance ministers, who will be meeting in Palermo on 17 February. At the meeting, he is expected to contact "American economists to see how they explain the possible recovery in their economy", he announced. The Twelve held an exchange of views on a report by the International Monetary Fund on the economic situation in the euro-zone, presented by its director for European affairs, Michael C. Doppler. According to Didier Reynders, Eurogroup largely shares the analysis on the strength of the euro-zone economy and the possibility of stimulating it by structural reform. He did not comment on the invitation by the IMF to ease off budgetary rigour in the euro area in order to offset the slowdown of the American economy.
The Twelve urged for strengthened coordination within the euro area but did not take a stance on all the proposals made by the Commission (see EUROPE of 8 February, p.7), mainly on the idea of creating a sub-group which would prepare their meetings, in a concern to not marginalise the countries outside the euro-zone. Didier Reynders placed emphasis on the common destiny of the euro and on the strengthening of economic policy coordination and of the resulting Eurogroup role. The Eurogroup meeting somewhat intruded upon the unfolding of the Ecofin meeting, which is, states the Eurogroup president, "one more reason to henceforth hold Eurogroup meetings the day before the Ecofin meeting, and more frequently".
Commissioner Pedro Solbes, in charge of monetary affairs, forwarded the scoreboard information on national plans for changeover to single currency, which mainly shows the problems encountered by SMEs in the acceptance and knowledge of this change. Pedro Solbes called for greater coordination of the euro-zone countries in information campaigns on single currency, in order to reduce the possible impact of inflation.
In response to a question on his recent declarations concerning the disproportionate influence that the Bundesbank has on monetary policy, Didier Reynders simply pointed out that he enjoyed the "full approval of the European Central Bank" and that he was moving along towards better dialogue between the ECB and the Eurogroup.