EU's Rehn says G20 must rebalance world growth

[Joanne98]

Source: Reuters

The European Union's monetary affairs chief called on G20 governments on Tuesday to take coordinated steps to rebalance world economic growth, ahead of their talks this week in South Korea.

EU Economic and Monetary Affairs Commissioner Olli Rehn said imbalances that destabilised the world economy before the 2008- 2009 financial crisis were emerging again, with exporting nations running excessive trade surpluses while others racked up unsustainable deficits.

Rehn said economic recovery in the United States, where jobless rates have remained stubbornly high and consumers cautious about spending, "appears to be running out of steam". While unemployment had fallen in most of Europe, a rebound in the region's economy was still "in progress", he said.

"In the world economy...the pre-crisis imbalances are emerging, which threaten sustained recovery and job-creation," Rehn told a news conference after talks between European finance ministers in Luxembourg.



Read more: http://www.reuters.com/article/idUSLDE69I1SR20101019

[Vincardog]

1. May be it is time to renegotiate NAFTA? Take away China's Most Favored Trade Status?