EU's Prodi sees quicker recovery in US than EU, but US recovery could falter
MILAN (AFX) - European Commission president Romano Prodi said he sees the US economy recovering quicker than in the EU but that structural problems in the US could mean its recovery falters.
In an interview in Il Sole 24 Ore, he said the trend in the US economy over the last 10 years has been supported by a younger, more dynamic population.
"Certainly this year, due to the monetary trend and the impressive support from the US deficit, it is probable that the US recovery will be more rapid," he said.
"But I see it constructed on sand, more than the European economy. The US deficit and the absence of savings support the American economy, but for how long?," he said.
"Our objective is to avoid these big disequilibriums. Now (the EU's stability pact) has been made more intelligent it can help us as a point of equilibrium for the future," he said.
Asked about the Italian economy minister Giulio Tremonti's plan to boost the EU economy through infrastructure spending, Prodi said that the commission has been working since March on a policy for stronger support for transEuropean networks for motorways, rail, broadband telecoms, and R&D.
"Resources can be committed without changing the pact, using the means of the European Investment Bank," he said.
Italy's presidency of the EU in the second half of the year should boost the economy as well as see a push for a strong policy towards the Balkans and the Mediterranean regions, he said.
On the EU convention for constitutional reform, he said he did not expect inter-government talks to change a great deal the plan to be presented by the convention to EU leaders this week.
The convention made progress in increasing the powers of the European Parliament, preserving those of the commission, and promoting a stable European presidency by member states, he said.
nt/jkm/
NNNN
MILAN (AFX) - European Commission president Romano Prodi said he sees the US economy recovering quicker than in the EU but that structural problems in the US could mean its recovery falters.
In an interview in Il Sole 24 Ore, he said the trend in the US economy over the last 10 years has been supported by a younger, more dynamic population.
"Certainly this year, due to the monetary trend and the impressive support from the US deficit, it is probable that the US recovery will be more rapid," he said.
"But I see it constructed on sand, more than the European economy. The US deficit and the absence of savings support the American economy, but for how long?," he said.
"Our objective is to avoid these big disequilibriums. Now (the EU's stability pact) has been made more intelligent it can help us as a point of equilibrium for the future," he said.
Asked about the Italian economy minister Giulio Tremonti's plan to boost the EU economy through infrastructure spending, Prodi said that the commission has been working since March on a policy for stronger support for transEuropean networks for motorways, rail, broadband telecoms, and R&D.
"Resources can be committed without changing the pact, using the means of the European Investment Bank," he said.
Italy's presidency of the EU in the second half of the year should boost the economy as well as see a push for a strong policy towards the Balkans and the Mediterranean regions, he said.
On the EU convention for constitutional reform, he said he did not expect inter-government talks to change a great deal the plan to be presented by the convention to EU leaders this week.
The convention made progress in increasing the powers of the European Parliament, preserving those of the commission, and promoting a stable European presidency by member states, he said.
nt/jkm/
NNNN
MfG, ZiZo
