WASHINGTON, April 9 The United States on
Wednesday urged Germany and other European countries to take
seriously the risk that Europe could slip into a dangerous
spiral of falling wages and prices.
"The risk of deflation is something that has a lot of people
concerned," Treasury Secretary Jack Lew told U.S. broadcaster
CNBC, urging Europe's export-geared countries to do more to
boost economic demand on the continent.
"Germany obviously is one of the surplus countries in
Europe," he said in an interview ahead of the spring meetings of
the International Monetary Fund in Washington.
"It's a good thing in Germany that in their new government
they made a commitment to increase spending on infrastructure.
This is a question of not if you take action but how (much) you
turn the dial. We think that the risk of low demand and the risk
of deflation is something that they need to be very alert to,
and they need to take a little more (action), not a little
(Reporting by Jason Lange; Editing by Bernadette Baum)