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Lew urges Europe to stimulate demand

The US and Canada have urged the EU to resolve its internal political differences and do more to stimulate its economy, amid concerns the bloc could impede a global recovery as geopolitical tensions and financial market risks grow.

“If the efforts to boost demand are deferred for too long there is a risk that the headwinds get stronger,” Jack Lew, US Treasury secretary, said yesterday at a G20 meeting of finance ministers and central bankers.

He said the US had “philosophical differences with our friends in Europe” and called on European countries to agree to boost short-term demand to stimulate growth.

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