G7 discussed joint action to calm financial markets
IMF Managing Director Dominique Strauss-Kahn (L) walks with Eurogroup Chairman and Finance Minister Jean-Claude Juncker before a group photo during the G7 meeting in Tokyo February 9, 2008. G7 leaders discussed collective action to calm markets if price moves become irrational, Eurogroup Chairman Jean-Claude Juncker was quoted as saying on Monday.
Credit: Reuters/Issei Kato
BRUSSELS (Reuters) - Finance leaders from the Group of Seven industrialized nations discussed collective action to calm markets if price moves become irrational, Eurogroup Chairman Jean-Claude Juncker was quoted as saying on Monday.
Juncker, who chairs the Eurogroup -- the monthly meetings of euro zone finance ministers and the European Central Bank -- told the Luxemburger Wort newspaper in an interview that turbulence on financial markets could continue for months.
"We are not yet at the end of the market crisis," Juncker was quoted as saying.
"The corrections will drag on for a few weeks, months. We have agreed in Tokyo that if there are irrational price movements in the markets, we will collectively take suitable measures to calm the financial markets," he said.
Asked what form such collective action may take, he said:
"Whoever has a strategy, should not set it out. Otherwise it will lose its effect if it is explained."
Finance ministers and central bankers from the G7 -- the United States, Canada, Japan, Britain, France, Germany and Italy -- said on Saturday in Tokyo that financial market turmoil was serious and persisting.
They also said more work was needed to restore markets to good working order and safeguard global growth.
Juncker told the Luxemburger Wort that European economic fundamentals were solid although growth would slow this year from last year's estimated 2.6 percent expansion.
"We will reach growth in the euro zone of 1.8 percent, which is about our growth potential. The European economy is robust," he said.
He reiterated that the euro zone did not need the kind of monetary and fiscal stimulus that the United States has decided on to stave off recession.
(Reporting by Phil Blenkinsop, writing by Jan Strupczewski, editing by Mike Peacock)
