- May 25, 2002
- Professional Status
- Certified Residential Appraiser
The EU's economy chief on Tuesday blamed overspending in the United States for the drop in shares on world stock exchanges, saying Europe was in better shape and could weather an economic slowdown.
"The main reason why the equity markets have this extreme volatile situation these days is the risk of a recession in the U.S., it's not about a global recession," EU Economic and Monetary Affairs Commissioner Joaquin Almunia.
"Big imbalances have been created, have built over the years in the U.S. economy, a big current account deficit, a big fiscal deficit, a lack of savings," he said after he met with EU finance ministers. The current account is the broadest measure of foreign trade.
"This is not at all the situation in our European economies. Our fundamentals are solid," he said. "We have a positive current account position, we have a level of savings in our economies that is the level required to finance our investments. We have a sound fiscal position."