Belgium Fin Min Calls For European Economic Government-Report

Published: 11 Nov 2008 01:25:43 PST

PARIS -- Belgium's finance minister Didier Reynders Monday called for a "European economic government" or at least better economic policy coordination in Europe, either at the European Union or euro zone level.

Speaking in an interview with French radio station France Inter, Reynders said such a move would help devise coordinated, and thus more powerful, answers to any economic slowdown.

Reynders said he doesn't believe an overall cut of the value-added tax rate would help weather the current economic slowdown, but said he was in favor in a VAT cut for specific segments, such as labor-intensive industries, for example restaurants and hotels.

-By Geraldine Amiel, Dow Jones Newswires; +33 1 40171740; geraldine.amiel@dowjones.com;