“The sovereign debt crisis in parts of Europe is a great concern, not only for India but for the whole world,” said the External Affairs Minister, Mr S. M. Krishna. Addressing a joint press conference with his German counterpart, Mr Guido Westerwelle, Mr Krishna said: “The euro crisis had a potential of choking trade across the world as well as India. The reassurance given by Mr Westerwelle at our meeting today has given us confidence and this can go a long way in solving the crisis,”
He further said Germany had the ‘firepower’ to take the European Union (EU) on a path of bigger economic growth and put an end to the current crisis.
“Germany’s commitment, as it is one of the strongest economies in the world, goes a long way to provide psychological strength to the affected countries and help them overcome the crisis of this kind,” said Mr Krishna.
Stability of euro
Mr Westerwelle said he had told Mr Krishna during the meeting that Germany would work hard for the better future of Europe and stability of the European currency.
“I am optimistic and full of confidence that we will manage this ‘debt crisis’ which has morphed into a crisis of confidence. This is a debt crisis and not a Euro crisis as such,’’ he stressed.
Mr Westerwelle also said that to overcome the debt crisis, solidity and fiscal discipline was important. “We cannot solve the debt crisis by taking more debt. We think stimulating growth is one of the key areas to solve this crisis,” the German Foreign Minister explained.
Mr Krishna said the sovereign debt crisis in parts of Europe can have great implications not only for Europe but for the entire global economy and added that he had very cordial and extensive discussions with Mr Westerwelle on issues pertaining to bilateral relations as well as the G-20 process, the global financial crisis, reform of global institutions including the United Nations Security Council and also global threat of terrorism.
Indo-German trade
The External Affairs Minister, Mr S. M. Krishna, said despite the ongoing global crisis, bilateral trade between India and Germany had been growing steadily. It had crossed €18 billion in 2011 and during the current calendar year, India was optimistic of achieving the target of €20 billion.
Mr Guido Westerwelle, who is to inaugurate the Indo-German Mela in Bangalore, will also address the Indo-German Chambers of Commerce.
“Important forward will be the conclusion of the free trade agreement between the EU and India. We will continue to work on this,” Mr Westerwelle said.