U.S. official says U.S., Europe disagree on effects of govt spending

Tue Apr 9, 2013 9:46am EDT
 
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PARIS, April 9 (Reuters) - U.S. Treasury Secretary Jack Lew and German Finance Minister Wolfgang Schaeuble disagree about the effect of government spending on the economy, but focused on areas of agreement in their joint meeting on Tuesday, a U.S. Treasury official said.

The official, speaking on condition of anonymity about Lew's trip to Europe, said the U.S. approach was not to tell Europe what to do, but rather ask questions and try to address areas that need work. The Treasury official said Europe is aware of the need to boost demand and combat persistent unemployment, and is trying to find the best ways of doing so.

Beyond boosting consumer demand, Lew also emphasized the need to make progress on an EU banking union in his meetings with officials, especially in light of what happened in Cyprus.