BRUSSELS (MktNews) - EU Commissioner for Economic and Monetary Affairs Pedro Solbes said Monday the IMF sees diverging economic growth rates in the US and the EU this year.
Speaking to reporters here, Solbes said a soon-to-be-released consultation paper by the IMF on the euro area highlights the different growth trajectories of the two regions
"I would stress the importance attached by the IMF this year to structural reform," he said. "And this is clear also in the report that there is a difference between growth rates in Europe and the US, particularly when we look at consumer behaviour."
He also said the broad economic policy guidelines for EU members need to be better focused. The remarks were made amid strong speculation that Ireland is about to be publically reprimanded by Ecofin for its pro-cyclical and pro-inflationary budgetary stance.
His comments were reinforced by the chairman of the Eurogroup, Didier Reynders. He earlier said there is a need for "internal cohesion" and added the guidelines cover all EU members but should be particularly stressed in the case of Eurogroup members.
Solbes, meantime, said there is a danger that the public could start to fear a resurgence of inflation ahead of the changeover to euro notes and coins at the start of next year.
"There are certain problems that remain," he said. "There are also some concerns about the inflationary effects of the introduction of the euro (notes and coins) and that is why we wanted to...avoid any problems that would lead to an unjustified inflation as a result of the changeover."
He repreated the need for budgetary consolidation and a balanced policy mix within the eurozone.