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FRANKFURT (Reuters) - The world's biggest economies should recommit to maintaining open markets and cross-border trade as a fresh wave of protectionism and deregulation could easily sow the seeds of a new crisis, Bundesbank President Jens Weidmann said on Wednesday.
Seeking to put 'America first', U.S. President Donald Trump's administration has advocated increased trade barriers and measures aiming to protect U.S. business interest, challenging a G20 consensus to maintaining open markets and cross border trade.
"Open markets and a competitive economic system are the pillars on which the prosperity of our economies rests," Weidmann, who sits on the European Central Bank's Governing Council said.
"Free trade and competition result in a quantifiable increase in prosperity, particularly for those who have to consider their spending carefully," Weidmann added. "Moreover, spurred by international competition, industries are more innovative and new ideas are spread more rapidly."
Reporting by Balazs Koranyi; Editing by Francesco Canepa