|Davos closes overshadowed by euro crisis|
BEIJING, Jan. 29 (Xinhuanet) -- The World Economic Forum wraps up in Davos, Switzerland on Saturday, having largely been overshadowed by Europe's sovereign debt crisis. CCTV correspondent Jack Barton reports, that the potential implications of Europe’s economic troubles on the global economy, made discussing a trading bloc that is too big to fail -- just too big to ignore.
Davos, Switzerland overshadowed by snow-capped peaks and for the past week Europe’s sovereign debt crisis.
The World Economic Forum wraps up here on Saturday having discussed very little other than Europe’s economic troubles and their growing impact as a slow brake on the global economy.
German Chancellor Angela Merkel opened the forum insisting Europe was on the right track, though conceded much greater integration would be required.
Those gathered in Davos wanted to hear much more.
Daniel Gros, director of Center for European Policy Studies said: “She had questions for the Davos gathering but she didn’t have answers. She’s the one person who really should have answers because the European Council meets next week and will have to make crucial decisions”.
No sooner had Mrs Merkel tried to calm nerves than Britain’s Prime Minister David Cameron stepped in to deliver a blistering attack on the current EU initiatives arguing the Euro will have difficulty surviving without far deeper financial integration, a more balanced trade structure, collective debt and a strong central bank.
But perhaps Britain should not have been the one to lecture.
Reporter: “During the summit Britain acknowledged it could be on the way to a double dip recession. Spain’s unemployment rate rose from a level that was already the highest in the industrial world. And ratings agency Fitch downgraded the credit ratings of half a dozen EU countries including Spain, Belgium and Italy”.
Delegates wondered what this all meant for Europe, but also what it meant for the global economy already feeling the impact of greatly reduced consumer demand in the EU and a corresponding slowdown in exports.
And what would a summit in Europe be these days if Greece did not steal the show.
This time it was a row with private creditors over the fixed rate of interest they should accept on new bonds they will accept in trade for their old ones that were worth twice as much.
A preliminary deal is done, but the consensus is Greece still has plenty more crisis to come.
Gros said: “Greece is really a problem that Europe can no longer solve because the Greek people and the Greek political system have not really lived up to the promises they have made. So all Europe can really do is try to limit the damages and put a big firewall around the country and then hope for the best.”
There is some good news.
Business confidence is up in Germany and France.
And Germany is reporting strong consumer spending and employment figures despite a slowdown in manufacturing.
There was also praise at the summit for the Central Bank’s action last month that saw half a trillion Euros pumped into the financial sector, which calmed market nerves well beyond Europe’s shores.
There was praise for austerity measures and bailouts but criticism leveled at EU leaders for talking too much about just those things.
Sony Kapoor, managing director of Re-define Europe said: “What they aught to be talking about is how to restore growth, how to have public investment we will come around to those topics and they will definitely start to be discussed possibly not with much substance.”
European leaders are now gathering in Brussels for talks on solving the sovereign debt crisis that has now entered its third year.