EU finance ministers and central bank chiefs will meet this weekend to evaluate the financial fallout of terrorist attacks in the US last week on EU markets and economies.
The meeting in the eastern Belgian city of Liege will begin Friday evening with a conclave of ministers of the 12-nation euro group to which non-euro members Britain, Sweden and Denmark have been exceptionally invited, said Belgian Finance Minister Didier Reynders, whose country chairs the EU this term.
"We firstly will be doing a general evaluation of the situation based on estimations of a certain number of European institutions and analyses by the (European) commission and European central banks," he told reporters Wednesday, September 19.
Before the US attacks, the were "aware that economic growth would not exceed two persent in 2001," he said, adding, "that would be a good result. "It is unlikely that the situation, after the events of September 11, will be better than before."
Less than a year ago, the commission was forecasting 2001 economic growth of 3.2 percent in the euro zone, and downgraded that to 2.8 percent last April. The downturn in Europe's economy, aggravated by the US attacks, remains undeniable, said Reynders, and "we must draw operational conclusions in budgetary and monetary policy."
He said the European Commission had been asked to come up with sector analyses on the specific consequences in the energy, transport and insurance sectors "in light of events last week. We have to see what the effects are," he said. "I have also asked the commission to evaluate the consequences of a possible financial intervention on the American side to support US air carriers," whose business has been particularly hard-hit.
"We will also be debating budgetary policy in the context of the euro group and also through the various figures on inflation and monetary policy, so the whole of the policy will be addressed," said Reynders.
The Ecofin proper begins Saturday morning with the 15 ministers and central bank governors looking at the situation "based on the conclusions of the previous evening," he said. That joint meeting will also focus on the introduction of the euro into general circulation next January 1, and preparation of an economic report for the informal EU summit in the northern city of Ghent on October 19.
Ecofin will also be looking at the budgetary implications of EU enlargement, the volatility of financial markets and also of development aid, "without necessarily linking them," said Reynders. ― (AFP, Brussels)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)
