Palermo, 19/02/2001 (Agence Europe) - The Finance Ministers and governors of the Central Banks of the seven most industrialised countries, meeting in Palermo over the weekend, recognised the slow down in world growth, but reaffirmed their confidence in the solidity the economic foundations. In their final press release, they declared that they would continue to "closely monitor developments on the exchange markets" and "cooperate when necessary". The G7 took account of the forecasts of the International Monetary Fund, which assesses growth at 3.4% for this year, whereas last autumn the IMF predicted 4.2%. They confirmed a greater slowdown that expected in American growth (according to the IMF, 1.7% this year) and recommended that the American authorities ensure to undertake monetary and budgetary policies that back "sustainable growth, while maintaining budgetary moderation and price stability, as well as a medium-term growth in national savings." American Secretary for the Treasury, Paul O'Neill declared, to reassure his European counterparts, that his country's exchange rate policy, in favour of a strong dollar, would remain unchanged. Regarding the euro zone, the Group of Sven considered that prospects remained good, thanks to strong domestic demand. Economic policies must sustain the potential for growth through structural reforms aimed at increasing the efficiency of the labour market. The G7 welcomed macroeconomic improvements and the balance of payments in Russia, while urging the Russian authorities to accelerate economic reforms. Finally, the G7 said it was concerned by the situation in Japan, where risks remained, despite a modest recovery.
Didier Reynders calls for greater cooperation between three large economic areas
The President of the Eurogroup, Belgian Finance Minister, Didier Reynders for the first time represented the euro zone at the G7 at finance minister level. He welcomed the role played by the Eurogroup within the G7 and noted that, for the first time, he had been admitted to the preparatory meetings. Mr. Reynders called for closer cooperation between the three major economic areas, Europe, United States and Japan, and hoped for more frequent exchanges of views, for example, by turning to new technologies like video conferences.. Finally, he pleaded for the European Commission having a greater role in international fora.. The Finance ministers will be speaking together again at meetings of the IMF and the World Bank.