The European Union (EU) currently has no targets for exchange rates despite the euro's recent appreciation against the yen, Finnish Finance Minister Eero Heinaluoma said here on Friday.

Heinaluoma, whose country is holding the current EU presidency, made the remarks when answering a question about the level of the yen against the euro prior to the informal meeting of EU financial ministers.

"We don't have any current aims" for exchange rates, said Heinaluoma, adding that there is still room for discussion on the issue.

"Exchange rates should reflect economic fundamentals and therefore also exchange rate developments should be seen as an outcome of differences in economic developments and as such natural, " he said.

"As you know, in the euro group we don't have any current aims for exchange rates, but still there is room for discussion," he added.

The minister said European growth is currently excellent, as the European Commission's growth forecasts show.

Earlier this week, the European Commission, the EU's executive agency, raised its euro zone growth forecast for 2006 to 2.5 percent from 2.1 percent.

"In the short run it really seems an excellent time in Europe, because the figures we have just heard from the commission are very positive ones. The growth figures are going up and it gives a positive (view of) this year's development," he said.

Source: Xinhua