"Meanwhile, the finance ministers of the 27-member EU will meet here Tuesday to discuss the general economic situation in Europe"3/14/2011
Eurogroup warns of risk to economic growth due to events in Middle East
BRUSSELS, Finance Ministers of the 17-member Eurogroup met in Brussels Monday to discuss the economic situation in Europe and the impacts the unrest in the Middle East and the earthquake in Japan on the world economy and financial markets. "We took stock of the economic and financial situation in the eurozone and in particular latest developments as regards inflation," President of the Eurogroup , Jean-Claude Juncker , told a press conference after the meeting this evening.
"There has been as significant increase in inflation reflecting the increase in commodity prices; we should keep an eye closely on inflation," he noted.
"There is a special risk for growth which has risen recently due to the situation in North Africa and Middle East, " he said adding that the EU has several cooperation instruments available to it which it can deploy to deal with this difficult situation.
On his part, EU Commissioner for economic affairs , Olli Rehn, told the joint press conference that "there is plenty of uncertainty on the economic situation and outlook due to the developments in the Middle East and North Africa and the unforeseen consequences of the tragic earthquake in Japan." Juncker sad they latest figures confirm that there is a positive trend in industrial activity in the Eurozone. "We think exports will grow due to p the world economic recovery in the next few months," said Juncker who is also the prime minister of Luxembourg.
Today's meeting discussed the situation on the financial markets in Europe.
"There have been recent tensions on the sovereign debt market and these have aggravated as a result the decrease in the credit rating for Spain and Greece , " said Juncker.
The Eurogroup received a request from the Greek ministry of finance to discuss the role of credit rating agencies.
"We did that briefly, and we said that there should be a better regulation for credit rating agencies because we think this is particularly urgent," he added.
On Japan, Juncker said they support the measures taken by the Japanese Central Bank and the Japanese authorities.
"It is too early to give a general assemement on the effect it (the quake) could have on local growth," he said.
The ministers they listened to Michael Noonan, newly-appointed Ireland's Finance Minister, who asked the EU Council to examine new ways of easing the costs for Ireland recapitalizing its banking system.
Meanwhile, the finance ministers of the 27-member EU will meet here Tuesday to discuss the general economic situation in Europe.
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