Nowotny Says Europe Can Solve Debt Crisis Without China’s Help
“There is a high degree of uncertainty, which is also observed by China, but my basic feeling is that Europe is and should be able to solve its problems by itself,” Nowotny, who also heads Austria’s central bank, told reporters in Vienna today. “If there are investments by China they’re welcome but this is a long-term trend. For short- or medium-term aspects, Europe is and should be totally able to solve this.”
European governments are struggling to contain a sovereign- debt crisis in the 17-nation euro region that’s forced Greece, Ireland and Portugal to seek bailouts and is now spreading to Italy and Spain. After leaders agreed to boost the firepower of the region’s rescue fund last month, French President Nicolas Sarkozy said he planned to call Chinese counterpart Hu Jintao to discuss China contributing.
“All countries take themselves decisions in how they invest reserves,” Finland’s member on the ECB council, Erkki Liikanen, said at the event in Vienna. He also said the “high level of uncertainty” created by the debt crisis is having “an impact on economic developments” in the euro area.
Liikanen and Nowotny declined to comment on ECB monetary policy.
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