SEOUL, Nov 11 (Reuters) - German Chancellor Angela Merkel said on Thursday she will not accept any numerical limits for current account imbalances at the G20 summit in Seoul.
"For strong, balanced growth it is necessary to reduce the global imbalances in the current accounts of countries," Merkel said in a speech at the G20 business summit, according to a text which was released in advance.
"Only cooperative action could get us forward. The key to reduce the existing imbalances is mainly to have flexible moving exchange rates of the major currencies. They have to reflect the economic fundamentals of the countries."
She made clear that she would not accept any numerical limits for current account imbalances.
"Fixing limits for current account surpluses or deficits is neither economically justified nor politically appropriate. This would also be in contrast to the principles of free trade in the world," she added.
Merkel said the leading rich countries had expressed their willingness at the G20 Summit in Toronto in June to reduce their deficits.
"It is important for me that the industrial countries had promised to half their deficits by 2013 and to stabilize or reduce their debt-ratio by 2016," she said.
Merkel added that removing barriers to trade was key to strengthening the global recovery.
"The summit must give a clear signal that the G20 is willing to lead the Doha Round to a successful end next year", she said, referring to long-stalled global free trade talks. (Reporting by Gernot Heller; Editing by Alex Richardson)