UPDATE 1-European officials applaud US strong dollar stance
* EU's Almunia says likes U.S support for strong dollar
* France's Lagarde says hopes U.S. message heard
* Lagarde says to discuss dollar at G7 meetings
(Adds Almunia comment, details on unemployment)
By Julien Toyer and Marcin Grajewski
GOTHENBURG, Sweden, Oct 2 (Reuters) - European officials applauded the United States' renewed backing for a strong U.S. dollar on Friday as they prepared for Group of Seven talks in Istanbul. U.S. Treasury Secretary Timothy Geithner said late on Thursday a strong dollar was very important, following complaints by European policymakers about volatility in currency markets. [ID:nN01294346]
European Union Economic and Monetary Affairs Commissioner Joaquin Almunia said euro zone and EU officials had made their joint position clear, and welcomed the U.S. stance.
"We know what is the attitude of the U.S. authorities regarding the dollar," Almunia said after a second and final day of meetings of EU finance ministers and central bankers in Gothenburg, Sweden.
"We like very much when they stress this attitude and this opinion in public."
The euro has appreciated more than 4 percent against the dollar EUR= so far this year, causing extra pain for exporters at a time when the economy has registered a steep decline.
French Economy Minister Christine Lagarde, one of many attending the Ecofin meeting who will go on to the G7 and International Monetary Fund gatherings in Istanbul, said she hoped the U.S. message would be heard. "I'm glad that he is in favour of a strong dollar. I hope he will be heard," she said when asked about Geithner's comments. "Everybody needs a strong dollar."
"We'll be able to speak a bit about the dollar, I hope for instance in Istanbul in the next few days," she said.
Asked if he was happy with Geithner's support for the dollar, Dutch Finance Minister Wouter Bos said: "Of course I am very happy."
Euro zone finance ministers and European Central Bank officials had a wide-ranging discussion on currency policy on Thursday and left little doubt they wish to see a commitment to currency stability in Istanbul. [ID:nL1607718]
"There is a very strong sentiment that we have a shared interest in a strong and stable international financial system, that excessive volatility and disorderly movement in exchange rates has adverse implications for economic and financial stability," ECB President Jean-Claude Trichet said on Thursday, in comments which helped push the euro to a three-week low of $1.4502.
After the Friday meetings, EU policymakers also agreed structural reforms were needed to tackle unemployment in the longer term. Unemployment in the 16-country euro zone rose to a more than 10-year high of 9.6 percent in August. [ID:nL1530049] (Writing by Krista Hughes, editing by Mike Peacock and Toby Chopra)
© Thomson Reuters 2009 All rights reserved

