HIGHLIGHTS-EU finance ministers' meetings

BRUSSELS Jan 22 (Reuters) - The following are comments by European Union and euro zone finance ministers and other officials in connection with their meetings on Monday and Tuesday in Brussels.

ITALIAN ECONOMY MINISTER TOMMASO PADOA-SCHIOPPA

Asked to comment on Tuesday's rate cut by the U.S. Federal Reserve:

"The response is certainly the right one, if it was done it was needed."

EU MONETARY AFFAIRS COMMISSIONER JOAQUIN ALMUNIA

On European growth:

"There is more or less consensus moving towards a drop in growth in Europe by a few tenths of a percentage point (in 2008).

"It's not logical to talk about a risk of recession in Europe."

On U.S. economy:

"We don't need to imitate all the decisions other economies can adopt. We need to rely on our own framework that is much more efficient.

"The U.S. economy has serious problems with fundamentals. We haven't. We are receiving headwinds in our economic situation coming from the turmoil in financial markets.

"People talk about recession in the United States economy. I prefer to talk about a pronounced slowdown."

On U.S. Federal Reserve's Tuesday interest rate cut:

"It's the Federal Reserve that has adopted this decision and they consider this is appropriate given the situation of the U.S. economy."

Asked if he would change his view of the global economy:

"It does not change my view. I hope it will help the U.S. economy."

ITALY'S PADOA-SCHIOPPA

Responding to a question on Fed rate cut:

"I don't think the events of the last 24 hours change fundamentally the assessment. The assessment is that a correction is under way, a correction to important imbalances."

GERMAN DEPUTY FINANCE MINISTER THOMAS MIROW

Asked whether Tuesday's Fed rate cut would change his view of the global economy:

"No, I don't think so. As you know, the crisis took its first stages in the U.S., so the U.S. are coping with it and that is their responsbility."

SLOVENIAN FINANCE MINISTER ANDREJ BAJUK, CHAIRMAN OF THE EU FINANCE MINISTERS' COUNCIL

Asked whether he was surprised by the size of Tuesday's rate cut by the U.S. Federal Reserve:

"No, I am not surprised by that."

EU'S ALMUNIA

On possible relaxation of budget deficit cuts:

"If one year ago we were considering that in good times the consolidation efforts should be more ambitious because of the windfall profits that some of our member states were receiving, maybe if this year we will be in a growth position below potential, we will need to consider the other side of the coin."

On rumours of coordinated interest rate cuts:

"I don't believe this rumour is based on reality. It's obvious that the central banks, among them the Fed and the ECB and also the Bank of England, have coordinated interventions to provide liquidity to the market but it's obvious that they would maintain their independence regarding interest rate policy.

"I will never advise in public the central bank as to what to do regarding monetary policy."

SLOVENIA'S BAJUK

On effects of U.S. economic situation:

"It is not clear what effects will occur due to the situation in the U.S. It is a fact that the (European) Commission and ECB services do not have clear information."

EU'S ALMUNIA

On U.S. deficits, market turmoil:

"The current account deficit and public deficit in the U.S., these imbalances are the root causes of the current turbulence -- not the only reason but the basic cause for a situation which needs to go through a period of adjustment.

"Any measures (by the U.S. authorities) should be aimed at reducing the external deficit and the fiscal deficit and increased domestic savings in the U.S., both in the private and public sectors.

"Even if the external economic environment is changing, we need to stick to our economic reform guidelines, it's the best tool that we will have to weather this turmoil.

"It's obvious that we are living in an uncertain period. After the starting of the turmoil last August, the tensions in financial markets are still there and during the last couple of weeks and in particular yesterday and today, equity markets are reflecting these tensions.

"So far until the end of 2007, equity markets were not affected as was the case in other financial markets. Now, equity markets are receiving this shock.

"According to our analysis, the reason why equity markets have this extreme volatile situation in these days is the risk of a recession in the United States. It's not about a global recession, it's about a recession in the U.S. because during the last years big imbalances have been created, have built over the years in the U.S. economy. A big current account deficit, big fiscal deficit, lack of savings.

"This is not at all the situation in our European economies. Our fundamentals are solid and sound, we have a positive current account position. We have a level of savings in our economies that is the level required to finance our investments. We have sound fiscal positions, we have improved a lot our fiscal positions. Indeed we have not subprime mortgages in our financial systems.

"So we are well prepared to weather this situation even if we cannot ignore the risks of our growth rates being affected by this turmoil.

"Our growth rates in 2008 will not be as high as we were expecting in November 2007, but in any case we consider that the central scenario is a scenario that will show growth in the EU and also in the euro area maybe not at our potential but close to this potential level. Employment will continue to be created and unemployment will be maintained at very low levels.

"So our reaction needs to be oriented by calm and serenity, not to overreact to this situation. The euro provides stability for our economies, not only for the euro area economies, also for the other EU economies.

"Can you imagine what would be the situation of many European economies if the euro did not exist since 1999?

"We cannot ignore that we are living in a difficult moment. We need to be vigilant, we need to monitor closely things that are going on in the financial markets, but we need also to send a message ... that we have the tools to deal with this situation."

SLOVENIA'S BAJUK

"They (European economies) are much better than the U.S. in any case.

"European growth will be slightly below potential in 2008.

"We need to be determined in future ... the Stability and Growth Pact is a good framework for facing the situation we are in."

EUROGROUP CHAIRMAN JEAN-CLAUDE JUNCKER

On possible reaction to turmoil:

"When financial markets act irrationally, and are driven by herd behaviour, when stock markets demonstrate short-termism, there is no reason for finance ministers to do the same."

"Europe and the euro zone are overall significantly better positioned than our U.S. friends, our fundamental data are better, the economic prospects are better."

Asked how big is the risk of a global financial collapse:

"I don't see the risk."

EU'S ALMUNIA

Asked if the world was heading for a recession:

"It's not about global recession, it's about a risk of a U.S. recession, which has created this situation on the markets. The question is how the U.S. will avoid recession. The U.S. authorities are announcing some measures. The executive branch has announced a fiscal stimulus. Fed President (Ben) Bernanke has announced he will probably announce some decisions. I hope they will be able to avoid recession and calm will return to the markets."

DUTCH FINANCE MINISTER WOUTER BOS

Asked whether there is a risk of recession in Europe:

"No... our fundamentals are strong and unemployment is at its lowest level."

SLOVENIA'S BAJUK ON STOCK MARKET SLIDE

"Obviously we're not very happy. We are really concerned about the situation as it is. However, we believe that with strong fundamentals, Europe can cope. We should continue the process (of economic reforms) as we have started, and this is exactly what we will be doing."

SPANISH ECONOMY MINISTER PEDRO SOLBES

"Today it's important to see how Wall Street opens, to see the reaction. It is true the situation is difficult, everyone is concerned. But the U.S. and Europe are different, the starting point of the economies in the U.S. and Europe is different.

"Europe and Spain are prepared to face this situation, thanks to stability reached in budget terms."

FRENCH ECONOMY MINISTER CHRISTINE LAGARDE

"If growth should slow significantly in the euro zone, the ECB would take it into account in its monetary policy, I suppose.

"Our solid European fundamentals allow us to expect significantly stronger growth in Europe compared to the likely U.S. growth."

On deficits:

"Reduction of the deficit is ... our objective, it remains a priority for all members of the euro zone."

EUROGROUP CHAIRMAN JEAN-CLAUDE JUNCKER

On inflation:

"A number of factors explaining the surge in prices will be reabsorbed in the course of this year so we should return to a normal situation regarding prices in the course of next year, but the central bank (ECB) will assess the information we provide and will take necessary decisions."

On market turbulence, U.S. fiscal package:

"Compared with the U.S. our fundamentals are very solid ... the EU economy has not been hit by the turbulence on markets and we continue to assume the impact will be fairly limited, but we need to assume if (there is a) trend towards recession in the U.S. this could lead to weakening growth rates in the euro zone.

"If this happens we have the reformed growth and stability pact, which includes an arsenal of instruments that could be brought out if we saw the economy weaken.

"On the specific question regarding a European programme, like in the U.S., I can say clearly no, we believe the economic situation in Europe is different from and better than that in the U.S. and we would not need such a programme as put forward in the U.S."

"Given the origin of the turbulence it is up to the U.S. to face up to this threat."

ALMUNIA ON MONDAY EVENING

On budgets in general:

"The first recommendation is regarding budgetary consolidation."

On Italy:

"According to information published in Italy and which I hope will be confirmed through the figures for 2007 ... I hope they will emerge from the excessive deficit procedure because at the end of 2007 they seemed to be below the 3 percent figure."

On turbulence:

"We can be optimistic about how European economies can face up to the turbulence. That doesn't mean there won't be any negative effects if it continues and if the U.S. economy continues to send these negative signals."

EUROGROUP'S JUNCKER

On financial turbulence, economy:

"We live in interesting times, which is about the only positive thing I can say this evening. Having said which, the economic situation, the situation of financial markets is highly volatile and uncertain.

"The economic situation in the United States is continuing to worsen. Over the last few months, we have ruled out the possibility of a recession in the U.S. but I think today we cannot rule that out completely.

"If there is a recession or real slowdown in the U.S., obviously that would be felt in terms of growth in the euro zone.

"So far ... we haven't seen any impact on the real economy of the euro zone economy as a whole. As far as 2008 growth, I suspect the (European) Commission forecast in February will show that the likely growth rate will be a little bit short of potential ... in spite of the oil risk, possible risk of inflation, it would be a mistake to fall victim to excessive pessimism.

"The economic situation in the U.S. is in no way comparable with that in Europe or the euro zone. "We feel comfortable with our economic situation at the moment.

"The economic situation in Europe seems to be uncoupled from the situation in the U.S.

"We need to look at what is rational, irrational, what is part of a process of correction, what is people overreacting. We see no need to change policy on foreign exchange rates and between now and the Tokyo (G7) meeting (in February) we will have all the time to fine-tune the message we will convey to our partners.

"We believe the best possible response is global as part of global dialogue."

DUTCH FINANCE MINISTER WOUTER BOS

Asked what the G7 should say on forex:

"They should say the same thing that they have always said, and that is that exchange rates should reflect fundamentals of underlying economies."

Asked what should be Europe's message to countries such as China and India on forex rates, he said:

"The same message as it has always been, that currency rates should reflect the fundamentals of the economy.

"A strong euro reflects the strength of the European economy."