Brussels, 08/05/2007 (Agence Europe) - On Monday evening, the Eurogroup looked at the spring forecasts published by the Commission that same day, welcoming the continuing growth. According to Commission predictions, GDP should progress by 2.6% this year in the eurozone, compared to 2.7% in 2006 (EUROPE 9421). The meeting, which was not chaired by Jean-Claude Juncker who was unwell, also tackled the exchange rate situation. Speaking to the press on Tuesday, German Finance Minister Peer Steinbrück reaffirmed the way the Eurogroup saw the question, repeating that “exchange rates should reflect economic fundamentals”- an identical message to that sent out by the G7 Finance in Washington in April (EUROPE 9407), or even earlier.
Commissioner for Economic and Monetary Affairs Joaquin Almunia said “everyone welcomed the spring economic forecasts” based on continuing investment, internal demand, good export results in most member states, a fall in imports and “controlled inflation”. He again reminded ministers of the sequence of decisions that would be taken in the context of excessive deficit procedure. Germany and Greece (as well as Malta), for which the Commission will recommend the repealing procedure on 16 May, should therefore be finally fixed as to their fate when the Ecofin Council meets in June. The same will be true for the United Kingdom after the summer, added Mr Almunia, confirming the deadlines also announced on Monday for countries that do not belong to the eurozone. “We think the Hungarian authorities are going in a good direction to fulfil all the commitments that they adopted after the Council recommendation for correction of the excessive deficit”, Mr Almunia said. In June, he will analyse the measures taken by Budapest to bring the country back under the 3% deficit mark by the end of 2009 at the latest (EUROPE 9283). Mr Steinbrück went on to specify that the eurozone “by 2010 will have a nil structural deficit” but this “is more likely because of the economic situation”. (ab)