BRUSSELS, May 13 - German Finance Minister Hans Eichel sounded upbeat on Tuesday about the prospects for a second half recovery in the eurozone and suggested the European Central Bank could lend a hand by cutting interest rates. "There are grounds for cautious optimism (on the economy). Geopolitical tensions have eased with the end of the Iraq war...we can expect a clear recovery in world trade," Eichel told reporters during a break in a meeting of European Union finance ministers in Brussels.
Asked if he saw room for the European Central Bank to cut interest rates, Eichel said talks between the ECB and eurozone ministers on Monday showed consensus on the inflation outlook. "I understood that everyone there, including from the ECB, saw no risks of inflation for the foreseeable future and that will certainly give room for measures," Eichel said.//