BRUSSELS (MNI) - European Union plans to regulate alternative investment funds - including hedge funds - are in line with an agreement made at the G20, a spokesman for the EU's executive arm said on Thursday.

The spokesman was responding to questions about a letter sent by US Treasury Secretary Timothy Geithner to EU Internal Markets Commissioner Michel Barnier who voiced US disapproval of the EU's plans and said they could be protectionist.

PARIS (MNI) - Despite the recovery in Eurozone consumer morale seen in the European Commission's monthly surveys, the outlook for private consumption remains uncertain, the European Central Bank said Thursday.

"At the current juncture, it is probably too early to assess whether or not recent developments in consumer confidence signal a genuine turning point in consumption growth," the central bank said in its Monthly Bulletin for March.

Provided consumption does not decline further, base effects alone should assure an increase annual growth rates.

LUXEMBOURG (MNI) - Greece's plan to consolidate the fiscal affairs of that country is a brave step in the right direction, European Central Bank Governing Council member Yves Mersch said Thursday.

Speaking at a press conference in which he presented the latest Bulletin of the Central Bank of Luxembourg, which he heads, Mersch said that a revision to the ECB's collateral framework is "not on the agenda."

LUXEMBOURG (MNI) - The European Central Bank never commits to a particular policy move ahead of time but rather is always prepared to do what the situation demands, ECB Governing Council member Yves Mersch said Thursday.

Speaking at a press conference to present the latest Bulletin of the Central Bank of Luxembourg, which he heads, Mersch noted, however, that inflationary pressures are not currently emerging.

PARIS (MNI) - The cutback in upstream oil sector investment in the wake of the downturn in demand since 2007 is likely to slow capacity expansion over the medium term, the European Central Bank warned Thursday.

"This may create new supply bottlenecks as the global economy recovers in the coming years and lead to upward pressure on oil prices in the future," the central bank said in its Monthly Bulletin for March.

BRUSSELS (MNI) - It could take 20 years or more to get back to pre-crisis debt ratios in the Eurozone unless the 16 member states make substantial efforts to reduce their deficits, an article in the European Central Bank's Monthly Bulletin said on Thursday.

To ward off the impact of the global economic crisis, Eurozone governments poured billions of euros into their economies, which sent their debt and deficit levels sky high. Now that the worst of the crisis has passed, they face the challenge of bringing those debt levels down.

LONDON (MNI) - European government borrowing will reach a new record high of E1.446 trillion in 2010, Standard&Poor's reported today.

In its new sovereign issuance survey, S&P said that this would be E52 billion higher than the previous record high of E1.394 trillion seen in 2009.

LUXEMBOURG (MNI) - Current official interest rates are at the appropriate level and the Eurozone recovery continues though it is uneven and uncertainty remains, European Central Bank Governing Council member Yves Mersch said Thursday.