Germany

Europe’s Weapon Against the Current Debt Crisis May Involve China

Tensions rise as Euopean leaders have yet to efficiently work together and develop a plan to combat the current debt crisis. Germany presented a bill at the Eurozone Summit on Wednesday to push Europe in the right direction away from the current debt crisis. As hostilities and debates continue, European leaders reach out to other countries to rescue Europe from the current debt crisis. One chief trader with Europe and possible key to unlocking the door to escape economic depression is China. China has not given any indication on whether or not they will provide bailout funding for Europe.

Europe continues to struggle to find a solution to combat the growing debt. German leader proposed a bill to make the European Financial Stability Facility (EFSF) more efficient, which contains 440-billion-euro, or 610 billion United States dollars, and is one of the major funders to rescue Europe from its current economic crisis. This measure would ensure that European taxpayers would not have to keep draining their money into a failing and weakening economy. The bill was presented during a meeting Wednesday at a Eurozone’s summit in Brussels and it was voted in favor for by the majority. Germany also proposed methods to increase bailout funding to the economically devastated Greece to change the economic state for the better. Despite the passing of the bill, the inability of the European Union to cooperate and provide a great solution to counter the debt crisis drove many nations to believe their future were dim. Thus, it also drove some leaders to look to China as a source to combat the European debt crisis. China is one of Europe’s chief trading partners, and if they choose to aid Europe, China could become a major leader in managing the global economy. Giving Europe money to combat their economic crisis is a political risk China is concerned about, considering most of the European countries, even in the current economic state, still have a higher per capita GDP than China. Though Chinese investors have not yet refuted the idea of allocating Europe with bailout funds, they are taking a neutral approach by continuing trade with Europe, in order to uphold an appearance to their constituents that they are cautious in their financial decisions. Hopes are still mounting as China’s rich economy has not given any indication about their decision to provide economic interdependence of bailout funding to Europe, which means there is still a chance for the two-year debt crisis to come to an end sooner than expected.

Liberal

http://www.chinapost.com.tw/international/europe/2011/10/27/321134/p1/Germany-passes.htm

http://www.chinapost.com.tw/business/europe/2011/10/28/321211/Europe-looks.htm

October 27, 2011 at 9:07 pm