EU calls on U.S. to make major effort to reduce massive account deficit

The EU's top economy official called on the United States Wednesday to make a major effort to build up public and private saving, warning that a sudden reversal of the massive U.S. current account deficit would damage the global economy.

EU Economic and Monetary Affairs Commissioner Joaquin Almunia said that imbalances in the global economy have now reached unsustainable levels as Asian exporters and Middle East oil producers pile up massive surpluses while customer nations _ such as the U.S. _ run big deficits.

He called again on China and other Asian economies to make their exchange rates more flexible _ which would hike the cost …