une 19 (Bloomberg) -- European Union leaders spotted the first signs of a âsustainable economic recoveryâ from the worst slump since World War II and started planning to roll back budget deficits piled up to combat the financial crisis.
In a draft statement at todayâs summit in Brussels, the 27 EU heads of state and government said the looming end of the recession makes additional stimulus unnecessary, adding that it is time to start hatching an âexit strategy.â They also agreed to overhaul financial regulation after banking supervision failed to contain the crisis sparked in the U.S. housing market.
âFurther budgetary stimulus would not be warranted and attention should shift toward consolidation, keeping pace with economic recovery,â the leaders said in the draft, which was obtained by Bloomberg News. âThere is a clear need for a reliable and credible exit strategy.â
The EU leadersâ outlook is more upbeat than that struck last week at a meeting of Group of Eight finance ministers, which ended with a statement noting âsigns of stabilization in our economies.â U.S. Treasury Secretary Timothy Geithner said at those talks that âitâs too early to shift toward policy restraint.â
The expression of official optimism pushed up the euro and prompted declines in European government bonds. The yield on the 10-year German bund rose to 3.55 percent. The euro was up 0.3 percent at $1.3946 at 1:21 p.m. in Brussels.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aZsiT87PgH7U
Buy signal...
In a draft statement at todayâs summit in Brussels, the 27 EU heads of state and government said the looming end of the recession makes additional stimulus unnecessary, adding that it is time to start hatching an âexit strategy.â They also agreed to overhaul financial regulation after banking supervision failed to contain the crisis sparked in the U.S. housing market.
âFurther budgetary stimulus would not be warranted and attention should shift toward consolidation, keeping pace with economic recovery,â the leaders said in the draft, which was obtained by Bloomberg News. âThere is a clear need for a reliable and credible exit strategy.â
The EU leadersâ outlook is more upbeat than that struck last week at a meeting of Group of Eight finance ministers, which ended with a statement noting âsigns of stabilization in our economies.â U.S. Treasury Secretary Timothy Geithner said at those talks that âitâs too early to shift toward policy restraint.â
The expression of official optimism pushed up the euro and prompted declines in European government bonds. The yield on the 10-year German bund rose to 3.55 percent. The euro was up 0.3 percent at $1.3946 at 1:21 p.m. in Brussels.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aZsiT87PgH7U
Buy signal...
