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The document discusses the euro debt crisis and China's role in alleviating it. While China believes rebuilding foreign investor confidence is key, China buying bonds from countries like Italy and Germany will only provide temporary relief. Unless Europe strengthens its competitiveness externally and reforms its welfare system to reduce the burden on public finances internally, the future of the EU and global economy remain at risk.

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20 views

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The document discusses the euro debt crisis and China's role in alleviating it. While China believes rebuilding foreign investor confidence is key, China buying bonds from countries like Italy and Germany will only provide temporary relief. Unless Europe strengthens its competitiveness externally and reforms its welfare system to reduce the burden on public finances internally, the future of the EU and global economy remain at risk.

Uploaded by

pearlynpuay
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
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But like all of the previous efforts to resolve Europes problems, the notion that

China can or will significantly alleviate the debt crisis is likely just another mirage.
The delegate of China believes that the key to solving the euro debt crisis lies upon
rebuilding foreign investors confidence
China can support the euro zone by buying the bonds from some of the euro zone
countries such as Italy and Germany.

As credit lines gum up and outsiders plead for action, it is not just the euro that is at risk, but
the future of the European Union and the health of the world economy.
Externally, Europe failed to adapt itself to the rapidly changing landscape of the
world economy by strengthening its competitiveness. Internally, Europe had been
suffering from long-term slow economic growth, but still attempted to maintain the
functioning of the welfare system, causing an increasingly heavy burden for the
public finance.

that fiscal austerity in donor countries is not only detrimental to their own economic recovery, and
certainly should not come at the expense of the development efforts of the poorest nations.- according to
a press release announcing the World Economic Situation and Prospects 2013, produced by the UN
Department of Economic and Social Development (DESA), the UN Conference for Trade and
Development (UNCTAD) and UN regional commissions.

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