MINISTERS FEEL EC FORECASTS TOO PESSIMISTIC
European Community finance ministers
discussed the economic outlook for the 12-nation bloc and many
said a recent gloomy forecast by the EC Commission was too
pessimistic.
    The Commission, the EC's executive authority, two weeks ago
cut its forecast for economic growth in the Community to 2.3
per cent for this year from 2.8 per cent predicted last autumn.
    It said economic prospects had been less promising over the
past few months because of a sharp fall in the value of the
dollar and a slowing of world trade -- factors which would
restrain Community exports.
    But diplomats said several member states, led by West
Germany, Britain and France, felt the forecast was too gloomy,
especially since it was drafted before a recent agreement
between the leading Western economic powers to stabilise
currencies around current levels.
    "Many delegations feel the (Commission's) report is rather
too pessimistic," said Belgian Finance Minister Mark Eyskens,
who chaired the meeting.
    The Commission, which slashed its growth forecast for West
Germany to two per cent from 3.2 per cent, has made clear it
feels Bonn has room to introduce additional measures to
stimulate its economy that would benefit the rest of Europe.
    But two top German officials, State Secretaries Otto
Schlecht and Hans Tietmeyer, told reporters Bonn saw no need at
the moment for action to bolster the EC's biggest economy.
    The diplomats said they were backed by Britain and France,
while Italy, Greece and Denmark supported the Commission's view
that Bonn should bring in new measures to aid EC growth.
