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Europe Daily Bulletin No. 8037
GENERAL NEWS / (eu) eu/economy

Fabius and Eichel on the subject of European growth

Brussels, 30/08/2001 (Agence Europe) - On Friday, the French and German Finance Ministers, Laurent Fabius and Hans Eichel, and the presidents of the two central banks are scheduled to meet in Berlin. Their discussions will mainly cover the ways to face up to the downturn in the economic situation. This last Franco-German economic and financial committee before the single currency takes effect, on 1 January 2002, should cover: - the decision taken on Thursday by the European Central Bank concerning rates, in the knowledge that Mr Jospin has already openly taken stance in favour of "relaxing the money rate" and that the German minister recently stated in an economic report that the fall in inflation changed the "general conditions of monetary policy"; - and the easing of budgetary austerity constraints in the context of the Stability and Growth Pact, for which a convergence of views could take place on the need to bring economic stabilisers into play while pursuing control of public spending and reaffirming the aim of reducing medium term deficits. Paris is expected to record growth of 2.3% in 2001, while the German Minister for the Economy, Werner Müller, acknowledged that growth would only be 1.5% this year.

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