Deficit countries, while following policies designed to encourage steady low-inflation growth, will reduce their fiscal and external imbalances.

The group also said its members "reaffirmed their commitment to reduce imbalances and to cooperate closely in exchange markets."

"To meaningfully reduce global imbalances, [the dollar] needs to fall a lot more from here."

The other major debate involves what should be done to reduce inflation and imbalances in trade.

"We would look for them to contribute to reducing external imbalances," he said.

In this connection, they agreed to continue cooperative efforts to stimulate growth and to reduce external imbalances.

"But if it is very small, they will complain that it won't do enough to reduce imbalances."

Are we for or against economic and social cohesion to reduce imbalances in a Union of 25 members?

Reducing very large imbalances is, fundamentally, sound.

The Madrid Council then decided to reduce regional imbalances, not least as a means of combating long-term unemployment.