Financial crisis: Asia and Europe must 'swim together', Barroso says
Tania Branigan in Beijing
guardian.co.uk, Thursday October 23 2008
No one is immune from the economic crisis sweeping the west, the president of the European Union warned today ahead of the opening of the Asia-Europe Meeting in China.
José-Manuel Barroso said that the two continents would "sink or swim together", adding that unprecedented cooperation was needed to deal with unprecedented times.
"We have to face serious challenges which don't respect any borders because they are global ... no one in Europe or Asia can seriously pretend to be immune," he told a press conference shortly before the opening of the summit in Beijing.
"Simply - we swim together or we sink together ... We need Asia to be on board and more particularly countries like China and India.
"The eye of the storm was in the US, but it is a global storm and there will be ripple effects all over the world."
Asia and Latin America were already seeing some effects, he added.
The ASEM meeting is the largest ever, with 43 countries attending. The EU president pointed out that together they account for almost 60% of the world's GDP, 60% of the world's population and 60% of global trade.
Barroso said it was clear that the meeting would be dominated by economic discussions. But he added that climate change would remain a priority, saying the economic and environmental agendas should be mutually reinforcing.
He added: "I hope we will not make the same mistake we made on financial problems. When you see a problem coming, the best way is not to postpone the solution but anticipate the solution."
The Chinese government has already stressed the need for increased cooperation.
Hinting at the longstanding differences between China and Europe over issues such as trade, Barroso added: "It's important to discuss with Chinese leaders this financial crisis. I very much hope China gives an important solution ... It is not just about finance but global imbalances. Those financial and macroeconomic imbalances are very much at the root of this crisis. It is a great opportunity for China to show a sense of responsibility to address those challenges."
Those imbalances included "the level or reserves countries have, the levels of consumption and internal demand compared with other countries."
Asian countries, particularly China, hold vast foreign currency reserves and the Chinese government itself has argued for a long time that a substantial increase in domestic consumption is needed.
Asked whether the crisis might make European countries more sympathetic to sovereign wealth funds - because they need an injection of capital - Barroso replied: "One thing we should avoid is protection[ism]."
But he added: "We believe member states can in some circumstances restrict some kinds of investment when they believe those investments can put at risk some important values."
guardian.co.uk © Guardian News and Media Limited 2008
Tania Branigan in Beijing
guardian.co.uk, Thursday October 23 2008
No one is immune from the economic crisis sweeping the west, the president of the European Union warned today ahead of the opening of the Asia-Europe Meeting in China.
José-Manuel Barroso said that the two continents would "sink or swim together", adding that unprecedented cooperation was needed to deal with unprecedented times.
"We have to face serious challenges which don't respect any borders because they are global ... no one in Europe or Asia can seriously pretend to be immune," he told a press conference shortly before the opening of the summit in Beijing.
"Simply - we swim together or we sink together ... We need Asia to be on board and more particularly countries like China and India.
"The eye of the storm was in the US, but it is a global storm and there will be ripple effects all over the world."
Asia and Latin America were already seeing some effects, he added.
The ASEM meeting is the largest ever, with 43 countries attending. The EU president pointed out that together they account for almost 60% of the world's GDP, 60% of the world's population and 60% of global trade.
Barroso said it was clear that the meeting would be dominated by economic discussions. But he added that climate change would remain a priority, saying the economic and environmental agendas should be mutually reinforcing.
He added: "I hope we will not make the same mistake we made on financial problems. When you see a problem coming, the best way is not to postpone the solution but anticipate the solution."
The Chinese government has already stressed the need for increased cooperation.
Hinting at the longstanding differences between China and Europe over issues such as trade, Barroso added: "It's important to discuss with Chinese leaders this financial crisis. I very much hope China gives an important solution ... It is not just about finance but global imbalances. Those financial and macroeconomic imbalances are very much at the root of this crisis. It is a great opportunity for China to show a sense of responsibility to address those challenges."
Those imbalances included "the level or reserves countries have, the levels of consumption and internal demand compared with other countries."
Asian countries, particularly China, hold vast foreign currency reserves and the Chinese government itself has argued for a long time that a substantial increase in domestic consumption is needed.
Asked whether the crisis might make European countries more sympathetic to sovereign wealth funds - because they need an injection of capital - Barroso replied: "One thing we should avoid is protection[ism]."
But he added: "We believe member states can in some circumstances restrict some kinds of investment when they believe those investments can put at risk some important values."
guardian.co.uk © Guardian News and Media Limited 2008
