Title: Final Statement on the Economic Impact of the Terrorist Attacks on the US

Category: Press Releases by the Belgian EU Presidency

Description: We, the Economic and Finance Ministers of the European Union, the President of the European Central Bank, and the Commissioner express our deeply felt solidarity with the United States of America. In addition to being a human tragedy, the terrible terrorist attacks have important political, diplomatic and security consequences. They also have an economic and financial impact in the short run. These events reinforce our conviction that close international and transatlantic co-operation in financial and economic matters remains indispensable. In addition, they underline the need to strengthen the co-ordination of economic policies in the European Union itself.

The EU economy has been affected, more than originally thought, by the slowdown in economic activity in the United States and in the rest of the world since late last year. The tragic events in the US have increased the uncertainties and downside risks for global growth prospects. We are determined to meet these unprecedented challenges. We and other policy makers around the world have demonstrated our commitment to react rapidly and appropriately. The ECB and other EU Central Banks, immediately after the attacks, took measures to safeguard the smooth functioning of the financial markets and reduced their key interest rates , as did the Federal Reserve.

The EU economy maintains solid fundamentals. Thanks to the fiscal consolidation already achieved, the EU economy is now in a better shape to deal with the cyclical fluctuations. We restate our commitment to the framework, rules and full implementation of the Stability and Growth Pact.

The fall in inflation , recent tax reductions and favourable financing conditions will create the conditions for a gradual strengthening of domestic demand in the EU as a whole. Moreover, OPEC recently declared their commitment to maintain price stability in oil markets. Further declines in oil prices could contribute decisively to better conditions for stability and growth in the world economy.

We are determined to co-operate closely and to continue pursuing sound macroeconomic policies and structural reforms, aimed at fostering growth, employment and competitiveness and maintaining price stability.

Date: 24/09/2001