Criticism of German trade surplus by Barbora Misakova

Topic of how to save and stabilize Greece has become the most discussed in the eurozone these days. And even though everyone is talking about it, no specific solution is known so far. But French Finance Minister Christine Lagarde announced her government is studying options to help Greece ease its debt crisis. As she said on Sunday, Greece may soon announce new steps to cut its budget deficit. And while the words of other European ministers resemble all those well known political promises with no real action, to believe in words of Europe’s finance minister of the year should be easier. Her dynamic action on regulation led France’s economy to become the most res! ilient economy in the industrial world which was according to Financial Times “always well balanced, reliant neither on exports nor on an over-inflated housing market.” The Financial Times said “the French government’s swift fiscal action was also important in averting an even deeper recession.” All these superlatives give her words even bigger value. In an interview to the Financial Times she questioned Germany’s trade surpluses as sustainable model for its neighbors in the Eurozone. As she declared herself, Germany has done good job in the last 10 years, but she hardly believes “it is a sustainable model for the long term and for the whole of the group.” Better convergence is needed, she added. Legarde also said the priority for the euro area was not to build up European monetary fund, but to ensure Greece sticks to its promised austerity measures. This is what should be done first and maybe then the time for “a bit o! f creativity and innovation” will come.

related s! tory (sgx16767): http://www.france24.com/en/20100315-french-economy-lagarde-m...

by Barbora Misakova for Cantell TV (http://cantell.tv)

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