Europe meets the world worries
EU leaders, meeting Thursday and Friday in Brussels, bend at the head of Greece and the world is watching. Sign of the attention paid to the euro area this week, the U.S. central bank, the rating agency Fitch and the central bank were all in their own way, trying to put pressure on European capitals.
Most recently, the deputy governor of the central bank of China, Zhu Min, criticized hollow inaction of EU leaders in the Greek case. "I do not think that Greece will go to bankruptcy because it is relatively small," he said in Hong Kong Thursday morning. "But we see no decisive action that would send a signal to the market saying:" We can solve this crisis, we can stop it. " The market remains very volatile. "
And prevent the problem is not confined to Greece."Greece is a case, but this is only the tip of the iceberg," he said. "The main concern today is obviously Spain and Italy." One way to remind Heads of State and Government meeting at the European Council that it is time to extinguish the fire fast cash without a hassle . The rating agency Fitch has in turn worsened the note of Portugal on Wednesday, highlighting the structural weakness of the country.
The fear of a "great shock"
The United States also expressed concern earlier this week when European inaction. For the first time a director of the Fed, the U.S. central bank, has publicly worried about a contagion of the crisis in the Greek American economy.He said such fear at worst "a big shock in financial markets" could occur "as a general movement of withdrawal [investors] the debt market states. A particularly alarming prospect as the United States have more need than ever to issue debt.
"These statements sound like a call for decision making at European level" analysis Natacha Valla, chief economist at Goldman Sachs. Ultimately, "this crisis, caused by a small country like Greece, is amplified by a bad reason: the failure of European authorities to take a decision."
See also:
"SPECIAL – Greece, a challenge for Europe