Europe has shouldered too much of the burden of recent currency adjustments and wants the Group of Seven economic powers to address the US dollar's weakness, French Finance Minister Herve Gaymard said on Monday. He told journalists the dollar's weakness would have to be addressed by co-ordination between the world's economic zones when the G7 meets on February 4 and 5.
German Finance Minister Hans Eichel said he hoped a credible strategy would emerge on reducing US deficits but said there would be no "spectacular decisions" at the G7 meeting.
"We agree that the imbalance at the source of the depreciation of the dollar persists and all should be done to remedy it," Gaymard said.
"Adjustment for America's deficits should not be made through foreign exchange markets," he said.
Policymakers from the G7 (Britain, Canada, France, Germany, Italy, Japan and the United States) and key emerging economies including China will attend the meeting.
Eichel said he hoped to see what he called a credible US strategy to reduce its budget deficit, and said Asia had to do more to promote flexible foreign exchange rates.
But he was downbeat on the possibility of major developments at the London meeting: "Do not expect any spectacular decisions at the G7. There won't be any."
European policymakers have been urging Asia, especially China, to let their currencies rise to share the burden of dollar weakness.
Expectations the London meeting would succeed in bringing an imminent policy shift in Asia have faded since Canadian Prime Minister Paul Martin played down such a prospect.
Separately, Gaymard said the European Union's Stability and Growth Pact, designed to protect the euro, must ensure currency stability without harming growth.