MercoPress. South Atlantic News Agency

US promises draconian budget to reduce deficit

United States is determined to reduce its budget deficit said Treasury Secretary John Snow who admitted that the current misbalance is “too significant”.

"We Americans know our budget deficit is too significant and it must be reduced. President Bush is determined to reduce the magnitude of the deficit", added Mr. Snow during an interview with the British press.

Mr. Snow is currently in Europe suggesting a stronger growth from the European Union is needed to keep the world economy rolling. Mr. Snow has been also criticized for the huge US budget deficits that have sent the US dollar tumbling against the Euro and the pound sterling.

"There are two ways for reducing the deficit, making the economy grow with more people working, with a more expansive economic activity and a more solid market that generates the necessary resources to keep government running:
"Obviously this is not enough, we must also contain expenditure and that is why President Bush has sent to Congress the most draconian budget in decades regarding discretional outlays"

However Mr. Snow during his first stop in Dublin insisted that the Bush administration has a "strong dollar" policy but excluded any possibility of intervening in money markets to support the US dollar, which is currently at its lowest against the Euro.

Last week the Euro reached an all time high of 1,30 US dollar and this week prospects seem similar. In the Euro zone there are growing concerns about the loss of export competitiveness with such a depreciated greenback.