May 22, 2017 / 9:35 AM / 3 months ago

Germany, France: low inflation, imbalances make euro zone vulnerable

German Finance Minister Wolfgang Schaeuble and French Economy Minister Bruno Le Maire attend a news conference in Berlin, Germany, May 22, 2017.Hannibal Hanschke

BERLIN (Reuters) - The euro zone remains economically vulnerable because of macroeconomic imbalances and low core inflation, German Finance Minister Wolfgang Schaeuble and his French counterpart Bruno Le Maire said in a joint statement on Monday after talks in Berlin.

"Despite the currently strengthening economic recovery in the euro zone, not all member states have recovered completely from the last crisis, and the euro zone is economically vulnerable due to major macroeconomic imbalances, low core inflation and significant financial fragmentation," it said.

In their statement, the ministers said they agreed that deeper coordination and integration of economic policy was needed to achieve real economic convergence.

"For this purpose, the completion of the banking union is a priority, as envisaged in the Ecofin Roadmap of June 2016," they added.

Reporting by Michael Nienaber, editing by Emma Thomasson

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