FEARS over stalling growth in Europe and the economic toll from a dollar-driven surge in the euro are to dominate talks among eurozone finance ministers tonight.

Mounting concern over the repercussions of the dollar’s sharp slide is expected to be at the heart of discussions between key EU finance ministers and John Snow, the US Treasury Secretary, who arrives in Brussels today.

With foreign exchanges expecting a potentially turbulent week, the dollar’s fall will also force its way to the top of the agenda at a meeting on Friday of finance ministers and central bank chiefs from the Group of 20 (G20) key world economies in Berlin.

Anxieties among the eurozone’s policymakers over the Continent’s deteriorating prospects, and future fallout from the dollar’s losses, grew last week after the release of bleak figures showing that Germany and France stagnated in the third quarter. The worse than expected data showed growth in Europe’s two top economies tumbling to 0.1 per cent.

The abrupt slowdown triggered a further loss of momentum for the eurozone, which saw its pace of expansion cut to 0.3 per cent — the weakest level in more than a year.

With alarm bells ringing in finance ministries and central banks across the eurozone, tonight’s talks are expected to focus on concern over the outlook into next year and the measures that can be taken to rekindle growth.

Some of the 12 eurozone finance ministers are expected to sound calls for action to curb the rise of the euro before its rapid appreciation chokes the bloc’s export-led recovery.

Last week the euro burst the watershed level of $1.30 to climb to record highs against the dollar, driven by pressure on the US currency.

After Jean-Claude Trichet, the European Central Bank (ECB) President, gave warning over the euro’s rise, condemning “brutal” moves in exchange rates, he may come under presure to consider intervention to restrain the single currency.

M Trichet’s comments, which echoed similar statements in January, were seen as an attempt to caution the markets that selling the dollar for euros should not be seen as a “one-way bet”.

Mr Snow is also likely to face demands for US efforts to bolster the dollar at the G20 talks, as well as during a series of one-to-one meetings with European finance ministers throughout the week.

The Treasury Secretary will hold discussions with Gordon Brown, the Chancellor, in London tomorrow.

But despite the intensifying concern over the falling dollar and rising euro, most economists believe that it is unlikely that any concrete measures will emerge from this week’s talks.

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