If euro fails, Europe will fail: Merkel

PTI Davos | Updated on January 29, 2011 Published on January 29, 2011

Asserting that Germany will defend the European Union currency, German Chancellor Ms Angela Merkel has said that if euro fails, Europe will fail.

“Let me say this very clearly again. The euro is our currency. And it is much more than just a currency. It is the embodiment of Europe today. Should the euro fail, Europe will fail”, she said while addressing the 41st annual meeting of the World Economic Forum.

“We are going to defend the euro,” the German Chancellor said while regretting that the world has not yet been able to put in place necessary mechanisms to prevent another global financial crisis.

While Germany stands firmly behind euro, Ms Merkel said that currency markets needed to be convinced that Europe was taking all the necessary steps to tackle its debt problems.

The international community was able to “prevent the worst” following the global financial crisis, the Chancellor declared.

“But can we safely say that we can prevent further crises from happening? Do we have the necessary mechanisms in place to ensure sustainable growth globally? We have laid down the groundwork, but we are not there yet. What we have done is not yet sufficient,” she warned.

Ms Merkel apprehended that the risk is that, now that the crisis is no longer dominating newspaper headlines, the international community, including the G20, will lose any sense of urgency.

“That is the danger. We still have an enormous job to do,” she said. The international community was able to “prevent the worst” following the global financial crisis, she declared.

“But can we safely say that we can prevent further crises from happening? Do we have the necessary mechanisms in place to ensure sustainable growth globally?” she asked.

According to Ms Merkel, the French presidency of the G20 marks the transition from crisis mode to a stage where the world needs to learn to work together. There are three principal areas on which this work should focus.

“We need to look at currencies. Exchange rates must reflect the fundamental data of individual countries,” the Chancellor declared. The second point is free trade. “The conclusion of the Doha Round is of utmost importance. We are, literally, metres away from the finishing line. But if we do not reach it, then decades will go by without this opportunity offering itself again,” she warned.

Finally, volatile commodity prices are hurting buyers and sellers. “We need to set up a more transparent system. There has to be fair access to commodities,” she affirmed.

Published on January 29, 2011

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.