European Central Bank chief Jean-Claude Trichet joined euro zone finance ministers at a meeting to decide when would be the best time to cut the stimulus spending that is boosting budget deficits.
The ministers agreed that deep cuts to budget gaps in the European Union must start in 2011 at the latest provided next month’s economic forecasts from the European Commission show stable growth in the region. However, France complained November was too soon to make that decision. Also under discussion was how the weak dollar is hurting Europe’s economic recovery. The euro is near 14-month highs against the dollar. That makes items exported from the 16 countries that use the euro more expensive for Americans to buy. European tourists visiting the states benefit, however the Europeans are losing patience with US government officials who say they want a strong dollar but are not doing anything to achieve that. The euro is up around 20 percent versus the dollar since early March and about the same amount compared with the Chinese yuan, which is virtually pegged to the dollar.