China should let yuan rise, ease euro pressure-EU

BRUSSELS, April 2 (Reuters) - China should let its yuan currency appreciate faster to ease upward pressure on the euro exchange rate, European Union Economic and Monetary Affairs Commissioner Joaquin Almunia said on Wednesday.

Almunia said in a prepared speech that the euro, a currency now used in 15 countries, was alone in bearing the burden of adjustment of global savings and trade imbalances.

"More flexible exchange rates in China and other emerging Asian economies would make also an important contribution to reduce global imbalances and would ease the pressure off the euro," he said at a seminar on sovereign wealth funds.

The euro strengthened some 12 percent against the dollar in 2007 and has risen another 8 percent so far this year.

"In the U.S., although the current account deficit has declined recently, only a major effort to increase public and private saving will drive a substantial improvement in the long term," Almunia said.

"Japan, which has a current account surplus, should aim to boost growth through labour market reforms and measures to inject competition into its economy," he said.

Almunia added that the euro area would keep implementing structural reforms to boost productivity. (Reporting by Jan Strupczewski; Editing by Dale Hudson)