politics

Group of 7 major economies to hold emergency talks

3 Comments

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

©2022 GPlusMedia Inc.

3 Comments
Login to comment

Germany is still resisting for Euro common bond which I can understand their reasoning while the rest or Euro want to go for it. They are desperate and want to be saved while Germany is the richest in Euro. Well, Germany has a lot to say. Therefore, this boils down to two countries decision: France and Germany. Very critical.......

G7 can produce something while G20 is only for photo session and hands shaking..

1 ( +1 / -0 )

Yu Yongding, an influential economist and a former central bank adviser, said in comments published last week that China should prepare for a Greek withdrawal from the single currency and proposed steps including capital controls to cash injections to domestic markets to reduce volatility.

China's central bank chief said in comments published on Monday that the country will continue to invest in euro zone government debt and other assets and urged the single-currency bloc to step up reforms to stem its debt crisis.

The rest of the world should take a hint from Yu Yongding. It's time to truly tackle the currency crisis amidst eroding economies before it's too late.

0 ( +0 / -0 )

@globalwatcher

The problem with these Euro common bonds is that they effectively commit the "stronger" countries to bailout the "weaker" ones. That means that Germany and France will have to bailout the others and thus save them from exercising (more) fiscal discipline.

Another problem is that even Germany does not by far exercise as much fiscal discipline as would be prudent in the situation. Although taxes keep flowing into Germany's treasury, they are not used to reduce the country's national debt but only seem to spur on the FDP (one of the parties in chancellor Merkel's coalition) to demand tax reductions. At the same time, the net new borrowing as projected in the next national budget still runs into billions.

France, on the other hand, seems to be committing herself to increased government spending (and thus even more increasing her national debt).

Therefore, it seems doubtful hat Germany and France will indefinitely stay able serve their bailout commitments even without Euro common bonds.

0 ( +0 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites