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The White House

Office of the Press Secretary

For Immediate Release July 1, 1993

Statement by the President

[Background: The Bundesbank cut the Lombard rate from 8.50 to 8.25% and the discount rate from 7.25% to 6.75% and other nations such as Sweden, Denmark, Netherlands, Belgium and Austria also cut their rates. The German discount rate has gone down 150 basis points].

Today's news that Germany has cut interest rates again is welcome news.

With over 22 million people out of work in Europe, and our economy at last beginning to create jobs again, Germany's responsible fiscal and monetary actions could not have come at a more critical time for both Europe and the United States.

It is also another sign that when America takes the lead in cutting its deficit and getting interest rates down we encourage other major nations to follow our lead in spurring global growth. By getting our house in order, we have facilitated pro-growth policies in Europe that mean more demand for American products overseas and more jobs and higher incomes for the Americans who make those products here at home.

Germany has taken an important step toward improved growth and I look forward to further progress at the G-7 summit in Tokyo.