HB BERLIN. Germany is hoping that the EU will catch on with the G20 meeting in Seoul with major demands. Chancellor Angela Merkel and Finance Minister Wolfgang Schäuble stressed on Wednesday just before their departure that they put on a settlement in the dispute over global imbalances in foreign exchange rates and exports – and the EU have a good chance to prevail with their positions because they speak with one voice .
The summit preparations had previously overshadowed by a fierce exchange of blows on the right track from the economic crisis. While the U.S. runs an expansionary monetary policy, the U.S. government also criticized the high export surpluses such as Germany and the Chinese policy of keeping the yuan artificially low. Merkel warned that the responses of the major economies must begin when the exit strategy, is unlikely to be too different. Behind this is the fierce attacks as the Europeans, but also many emerging economies of new major economic impulses of the U.S. government.
"No man can have interest in new bubbles," said Merkel, without the United States to call directly. "Growth in the global economy must be sustainable and lasting than a few years ago." Schäuble stressed that they wanted to help the U.S., given its difficult economic situation. "We are interested in a strong America." But this was not a one-way street. He recalled that the EU had also at the G20 summit in Toronto at that time around to its position, the crisis-induced deficits in half by 2013 again. "Now it becomes clear that Germany is (still) rather than growth engine brake."
Merkel also made clear where the red lines will be for Germany in the debate in Seoul. "We reject quantified range of acceptable imbalances," she said with a view to U.S. criticism of Germany’s high export surpluses. The competitiveness of different countries should also continue to express the export rates.
Merkel explicitly praised China’s role. "China tends to be a good companion for our household and € consolidation," she said. The Chinese leaders have shown by investing in Greece and visits to Portugal, that trust in the euro area. "China has a very strong interest in sending out a positive signal from the summit. China needs a sustainable growth."
The summit will be able to decide a number of important points, said Merkel. These new rules were for the future provision of capital banks. This was "a huge success," said Merkel. The question of how big banks could be handled in an emergency will be decided but probably only in 2011. Importance of a clear mandate einzubiegen in the final phase of the Doha world trade round. "Because the biggest threat to the world economy is currently protectionism."
Next year it will go under the French presidency of G20 therefore to establish a permanent role for the G20. The outstanding role Merkel for the body of the largest economies sees it, her comment made it clear this issue is the "government, or at least coordination in the world."
Barack Obama, meanwhile, arrived in Indonesia after his stay in South Korea. In the capital Seoul, he will attend the G20 meeting. Obama defended the recent flood of money the Fed against worldwide criticism. Many countries complain that the flood of liquidity declining exchange rate of the dollar and more on United States goods as an unfair competitive advantage.
South Korea is the third country to visit the U.S. president on his ten-day Asian trip. He arrived there in the early hours of Thursday (local time) one. Previously, Obama was in India and Indonesia, where he lived as a child four years. During his stay in Jakarta, the U.S. president has sought to relax between America and the Islamic world. both sides had to overcome "suspicion and mistrust," he said on Wednesday in the country with the world’s largest Muslim population. "I made it clear that America is not now nor in the future is at war with Islam," Obama said. It is true but to fight terrorism internationally. He also praised Indonesia’s efforts in the fight against violent extremism.
During his celebrated speech to about 6000 mostly young audience Obama wove always an individual sentences in Indonesian. Indonesia is a part of him, he said, such as the national language at the beginning of his speech, which turned unusually personal. He remembered the little house where he lived with his family, and the mango tree in front of the door.
Previously, Obama had visited with his wife Michelle, the largest mosque in Southeast Asia. When he lived 1967-1971 in the country is the Istiqlal mosque was still under construction, said the President. The time in Indonesia have helped him to recognize the worth of all people, because there the diversity of religions and peoples, spread over thousands of islands, is particularly large.