20 May 2005, 13:44  Limiting the EU working week to 48 hours would prejudice the economic growth euro zone

Limiting the EU working week to 48 hours would be a mistake that would prejudice the economic growth of a region already trailing the US, said International Monetary Fund managing director Rodrigo Rato. A 48-hour limit would push the eurozone in "the opposite direction" from the rest of the world. "It is sending the wrong message," Rato said in an interview with Expansion. The European parliament voted this month to end exemptions enjoyed by the UK and some other countries to the EU's working-time directive requiring people to work an average of no more than 48 hours a week. "I don't know what social model they are defending by stopping people doing more," Rato said. Rato said the IMF is sticking by its forecast that euro zone GDP will grow 1.6 pct this year, far below the fund's 3.6 pct forecast for the US. "There is not an alternative to the US as the engine for growth," he said. He also reiterated his view that the European Central Bank should be ready to cut interest rates if signs of "greater weakness" emerge.

© 1999-2024 Forex EuroClub
All rights reserved