PARIS, Feb 18 (Reuters) - Germany dug its heels in ahead of G20 talks on global economic imbalances on Friday, with a German source saying Berlin wanted nothing less than agreement on a full list of indicators used to tackle such mismatches, including exchange rates.
G20 finance ministers meet in Paris on Friday evening and Saturday to discuss a series of indicators that could be used as benchmarks for juding when one of other of the world’s economic powers should change economic policy.
Exchange rates are particularly sensitive because of tension over China’s currency, which many others in the G20 group of economies argue is artificially weak, giving Beijing an unfair trade advantage.
Germany’s own trade surplus is a similar source of friction with the United States and some of its euro zone partners.
“We support the work on the (imbalances) framework,” a German source told Reuters. “But we want the whole set of five indicators to be adopted.”
“It is hard for us to imagine leaving some out, for example leaving out the currency-related ones while holding on to the current-account one,” said the source, adding: “That aside, we support the French (G20) presidency in their efforts to make progress on this question”.
Delegates said on Thursday that China and Germany were dragging their feet because they did not want to be singled out in future for running excessive current account surpluses. (Reporting by Gernot Heller; Writing by Brian Love, editing by Mike Peacock)