BRUSSELS (MNI) - The European economic recovery depends on shoring up public finances in the 27 member EU, Swedish Finance Minister Anders Borg said on Friday.

"If we want to secure the recovery, we need to secure the public finances," Borg told reporters as he arrived for a meeting in Brussels where economic governance reforms will be discussed.

He said this should include "more front-loaded consolidation and more emphasis on debt."

BRUSSELS (MNI) - The 27 members of the European Union haven't been taking the bloc's debt rules seriously enough and need to put more emphasis on it in the future, a European Commission spokesman said on Friday.

The comments come ahead of a meeting of European Council President Herman Van Rompuy's task force, which aims to increase economic governance in the European Union to reassure worried investors that the bloc is in control of its heavy debt burden.

FRANKFURT (MNI) - One of the lessons from the crisis is that monetary policy should be more symmetrical, European Central Bank Vice President Lucas Papademos said Friday.

Monetary policy should also be set over a longer-term horizon, he urged in concluding remarks at a symposium held in his honor.

Although the crisis has "strengthened" the idea that monetary policy should "lean against the wind", monetary policy should not be "overburdened," he argued. Furthermore, a monetary policy that leans against the wind is hard to implement, he cautioned.

FRANKFURT (MNI) - The European Central Bank managed to jump-start the covered bond market with "small action," ECB Governing Council member Christian Noyer said Friday, referring to the bank's decision to purchase E60 billion worth of the bonds.

The ECB has now expanded bond purchases to government bonds but has not pre-committed to a total purchase amount. Executive Board member Lorenzo Bini-Smaghi said the volume will depend on its effectiveness.

LONDON, May 21 (MNI) - Macro account long squeeze of euro crosses into European morning trade saw euro-sterling drop back below stg0.8700, from an overnight high of stg0.8774, in turn providing cable with buoyancy that allowed rate to consolidate its recovery around $1.4400.

Markets were described as very thin, with many traders sideleiond after the recent whippy moves, wiht orders dominating direction.

LONDON, May 21 (MNI) - Euro extended its recovery through the overnight Asian session, euro-dollar pushing up to $1.2673 ahead of the European open.

Macro accounts were said to have taken advantage of the rally, selling the rate back below $1.2500 as they squeezed euro-cross long positions.

Markets were described as thin, with direction provided by order-driven trade.

BERLIN (MNI) - Germany's lower house of parliament, the Bundestag, on Friday approved a bill on the country's share of the financing in the EU rescue plan for fiscally troubled member states.

The upper house of parliament, the Bundesrat representing the 16 states, will vote on the bill later today.

Given that Germany's share of the loan guarantees foreseen under the European aid package will come out of the federal budget, the Bundesrat could only delay the bill but not block it indefinitely. Still, it is not expected that the Bundesrat will delay the bill.

BEIJING (MNI) - China's Ministry of Commerce warned Thursday that the outlook for the nation's exports this year remains subdued, arguing foreign demand hasn't recovered yet.

"The impact from the international financial crisis is not over yet. External demand hasn't really recovered," said vice Commerce Minister Zhong Shan in remarks published on the ministry's website.

Zhong said Chinese exports are facing fierce competition in international markets and that trade conflicts and protectionism are on the rise.