SEOUL, June 12 (AFP): Senior European and Asian financial officials will gather in South Korea this weekend to debate ways to tackle the global financial turmoil sparked by the US subprime mortgage crisis.
Europe's huge and growing trade shortfall with China is also expected to be among key topics at the two-day Asia-Europe meeting (ASEM) starting Sunday, analysts say.
The talks on the southern resort island of Jeju will draw about 400 delegates, including 45 finance ministers or vice ministers from 43 Asian and European countries, organisers said.
The forum has been the main channel for economic and financial cooperation between the two continents since its inception in 1997.
"This meeting will become a forum for free debate on global financial turmoil caused by the US subprime loan crisis, its effects and how to cope with it," Song In-Chang, director of the ministry of strategy and finance's international financial policy division, told newsmen.
Other topics will include the implications for Asia of Europe's economic integration; market-oriented approaches to coping with climate change; and financing for social infrastructure, he said.
Europe's widening trade deficit with China will be another key issue, said Korea University economics professor Park Young-Chul, a key South Korean participant.
The deficit in 2007 was 159.16 billion euros (246 billion dollars), according to EU figures, up from 131.07 billion euros in 2006.
"Europe is expected to demand China address this issue," Park said. "At the Jeju meeting, there will be greater pressure from Europe for the appreciation of the Chinese currency."
The US and Europe accuse Beijing of keeping the yuan undervalued to support its booming exports. But China, with foreign exchange reserves estimated at more than one trillion dollars, is reluctant to relax its currency regime too quickly.
Park also said there would be "serious discussion" of policy tools to mitigate the effects of the US subprime mortgage meltdown. But he ruled out any concrete decisions in Jeju.
The US Federal Reserve and key European central banks have poured billions of dollars into the financial system since the credit crisis erupted last August due to rising defaults on US subprime mortgages.
