Brussels, 03/02/2003 (Agence Europe) - French Finance Minister Francis Mer and Spanish Finance Minister Rodrigo Rato said on Monday that the EU was to find a strategy allowing it to combat an eventual oil price hike. During a press conference in Paris, Mr Rato said he had discussed with his French counterpart about the need to make an analysis, within the Eurogroup, of the national and European reaction to a rise in oil prices, in order to avoid measures that could hurt the economy. The French minister stressed that, given the current strained relations with Iraq, many major economic decisions are not being taken and that the current uncertainty is not good for economic operators.
In a joint statement issued after their meeting, the French and Spanish ministers declare that "in the current context, marked by uncertainty, economic policy should be orientated towards stability and macroeconomic growth". They restate their commitment "to follow public finance policies in the framework of the Stability and Growth Pact" and also stress the need to strengthen Europe's voice. The aim should be single representation in international financial gatherings, the statement says.
Mr Solbes says major oil price rise would be worrying for growth
During a conference on 3 February on the euro, the Mediterranean and the Gulf (EUROPE of 1 February, p.13), Commissioner Pedro Solbes warned that a $33 to $34 rise in oil barrel prices would be worrying for European growth. According to calculations by his service, a 10% rise in the price of oil would entail a reduction of around 0.2% growth in Europe. Mr Solbes added, however, that the rise in oil prices was just one factor among others that can delay renewed growth in the euro zone, and felt that it was still too early to review growth forecasts published by the Commission in November (1.8% in 2003).