Economy

European leaders favours more fiscal prudence to save euro

| Updated on: Jan 27, 2012

The ice appeared to be melting over tackling euro crisis at this Swiss alpine resort with the leaders of several European nations agreeing to press for tighter rules and greater fiscal prudence to keep the common currency afloat.

The urgency to introduce fiscal discipline and hope that the euro crisis would be resolved sooner than later was expressed by leaders of various smaller European countries at the meeting of the World Economic Forum annual meeting here.

The sovereign debt crisis, exacerbated by the possibility of default by certain European nations, it is feared, might derail the fragile recovery after the global financial meltdown of 2008.

Leaders of both smaller and big European nations, including Germany and the UK appeared to be on the same page while making a case for fiscal discipline to restore confidence of the world in the common currency.

They also voiced optimism over the latest efforts to establish a framework for fiscal discipline to save euro.

Ireland Prime Minister, Mr Enda Kenny, said that citizens in his country “simply went mad, borrowing” but that tight discipline including cuts in wages are now bringing the situation around.

“It’s important to remember that the core problem is not Europe, but the lack of discipline among some member states,” said Mr Helle Thorning—Schmidt, Prime Minister of Denmark, a country that belongs to the EU, but not the euro zone.

Polish President, Mr Bronislaw Komorowski, also expressed optimism, noting that Poland had survived numerous financial crises in the past, including its transition from totalitarianism to democracy.

“Today’s crisis looks easier than that,” he said, adding, “it can be overcome if we have the courage”. Komorowski cautioned that time is limited. “If Europe doesn’t improve fast,” he warned, “it will lose its position as an economic leader“.

Published on March 12, 2018

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