MercoPress. South Atlantic News Agency

IMF asks Bush administration to balance budget.

International Monetary Fund Managing Director Rodrigo de Rato said that the main challenge for re-elected United States president George W. Bush during his second mandate will be the budget deficit.

Mr. Rato described the US budget situation as "one of the most serious disequilibrium of the world economy" and asked the Bush administration to help reverse it.

"This disequilibrium must be corrected, partly through a US policy of internal savings; That is why we believe it's important that the reduction of the US budget deficit be accelerated", underlined Mr. Rato.

However Mr. Rato also added that the situation can't be corrected "in solitary", but must rather be addressed in collaboration with other regions of the world since this is a "complex and global" problem.

IMF General Manager suggested that Europe must contribute with a stronger growth, "which currently is not happening", and Japan must abandon "its deflationary situation" which could begin to occur at the end of the coming year.

Furthermore Mr. Rato insisted it was "necessary" that Asian currencies adjust to their current economic real situations.

President Bush's re-election forced the Euro to a new record against the US dollar, (one Euro equivalent to 1,2867 US$), since many economists and market analysts believe the Bush administration is seriously considering making the huge tax cuts of its first mandate permanent.