EU finance ministers to pressure China

Euro zone finance ministers increased pressure on China last night over the weakness of its state-controlled currency.

Euro zone finance ministers increased pressure on China last night over the weakness of its state-controlled currency.

They made the point after talks to forge a stand ahead of an October 19th meeting of finance ministers from the G7 industrialised powers - the United States, Japan, Canada, Britain, and euro-zoners Germany, France and Italy.

In a statement, the euro zone ministers reiterated pleas to financial markets to heed US statements that a strong dollar was in US

interests and take account too of Japan's improving economy.

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Jean-Claude Juncker, chairman of the meeting, and European Central Bank President Jean-Claude Trichet would are Beijing before the end of the year with European Economic and Monetary Affairs Commissioner Joaquin Almunia.

The euro has risen more than 20 per cent against the dollar and yen since its launch in January 1999.

Though China has allowed its currency to gain marginally versus the dollar over the past two years, it has let it slide against the euro in equal proportion, compounding the feeling that the euro zone is carrying the can for currency mismatches.