As the threat of global economic fallout looms nearer, Asian and European leaders meet to discuss their options.
The meetings, which began in Bangkok this week, come as Asia’s economies begin to buckle under strains from the European debt crisis. Previously viewed as the strong points in a global crisis, the region’s concerns are deepening.
“With the ongoing economic difficulties of some countries in the Eurozone, I believe that our cooperation is even more crucial than ever,” said Kittiratt Na-Ranong, the Thai Finance Minister.
“Because Asia and Europe are closely knitted in terms of international trade and investment, one spark of crisis could cause turmoil in the other side of the world,” he continued.
Europe is dealing with internal arguments as well, amid talks of whether austerity or pro-growth measures will solve the region’s problems. According to a statement from Host Thailand, officials “expect that the European economy will gradually recover from the current crisis.”
Many agreed that the only solution demands that Europe pursue “growth-friendly fiscal consolidation as well as growth enhanced policies and further structural reforms. Ministers stressed the role of emerging economies in the global effort by further strengthening private consumption and implementing structural reforms to help boost domestic demand and growth.”