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China Claims Has Help Overcome European Crisis
December 22nd, 2010 | 
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The Chinese government claims to have taken some concrete steps to help the European Union in addressing the crisis in the region.
“We support the rules of the IMF [International Monetary Fund] and has undertaken concrete action to help a number of EU members against the debt crisis,” said Chinese Vice Premier Wang Qishan at the opening forum of the EU-China High-Level Economic & Trade Dialogue, day this.
The forum is an event of bilateral dialogue between China and EU economic and trade issues. Also attending the ceremony were EU Competition Commissioner Joaquin Almunia, EU Trade Commissioner Karel De Gucht and Chinese Commerce Minister Chen Deming.
According to Wang, a number of EU member states have taken important steps to respond actively to the debt crisis. The Chinese government, he said, hoping the move would provide results quickly and create a stable recovery in the economy’s 27-nation region.
Data from the Department of Customs of China noted the EU as the largest trading partner. For the EU, China is the second largest export market by value of trade balance increased by 33.1% in the first 11 months of 2010 from the same period the previous year (year-on-year) to U.S. $ 433.88 billion.
Referring to EU’s Statistical Office data, the EU trade deficit with China widened to $ 161 billion (122.2 billion Euros) in the first 9 months of this year from 97.8 billion Euros (year-on-year). EU exports to China increased 39% in the period, while imports rose 30%.
In a press conference, Minister of Commerce Chen Deming expressed China’s economy faces uncertainty in 2011. Consequently, the government gives great attention to the situation of EU government debt crisis, especially in the quarter I/2011, if the later can be overcome.
“Policy-makers in our country will see if efforts to prevent the risk of [systemic] showed improvement, and whether they are able to translate the consensus into practice to get out of the crisis as soon as possible,” he explained.
As a result of the crisis, Greece and Ireland had to ask for bailout from EU and IMF. Moody’s Investors Service last week downgraded the Irish government’s debt as much as 5 levels and enter into the Greek ranks so that the ranking opportunity to review the status trimmed.
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Obama-Cameron Agree not to “hook” on BP Disaster
U.S. President Barack Obama and British Prime Minister David Cameron, Saturday, agreed that there is no advantage to be gained from the Gulf of Mexico oil spill disaster facing British Petroleum (BP).
Obama and Cameron similar view was stated by a British official to the press after the meeting the two leaders in Toronto, Saturday (26th June 2010). A day earlier, Prime Minister Cameron asked for clarification about the costs borne by BP’s oil spill disaster in the Gulf of Mexico that have occurred since April, 20th 2010. Giant Oil Company’s stock price was down to the condition of England which never existed 14 years ago. In addition BP’s market value also lost about 100 billion U.S. dollars since the disaster occurred.
Business and shareholder groups also demanded that British Prime Minister Cameron to act firmly to the interests of BP, because President Obama is deemed “too critical” of BP in order to divert their popularity is falling. British Government officials said Mr. Cameron raised the issue of BP is in his first meeting with Obama since he was appointed as British prime minister last month.
Greece Successfully Reduced Financial Deficit
Central Bank of Greece announced his government managed to reduce its budget deficit in half in the first half of 2010.
ANP preach, financial power of the government under George Papandreou, has experienced a deficit of 11.43 billion euros this year.
“End of June 2009, the budget deficit reached 20 billion euros. Government had exceeded its target of 40 percent planned to reduce the budget deficit in 2010,” said finance minister of Greece, George Papaconstantino.
Greek government promised to reduce the deficit in 2010 to 8.1 percent of gross domestic product.
“The Government aims to reduce the deficit in 2010 reached 8.1 percent of gross domestic product (PDP). In 2009 the deficit reached 14 percent of gross domestic product. Greek implement large-scale savings and raise taxes,” cap.
French Finance Minister Not Bothered on Ratings Down
French Finance Minister Christine Lagarde said there is nothing to worry about degradation of the country’s credit rating while there is a massive cost cutting by government. However, she questioned a number of policies tightening with a target budget ministry, which was announced yesterday by President Nicolas Sarkozy.
When asked whether the fear of a decline in ratings, he said on RMC radio: “I have no reason to worry”
She thinks the government has sought to cut spending and not raise the tax rates that may inhibit growth.
“This is a reasonable policy and carried out to coincide with a reduction in public spending and increased investments are effective,” she said.
In addition to a pension reform which the government would save 19 billion euros and budget cuts in other sectors, Sarkozy called on the government today to reduce spending on travel, cars and ministerial staff. Spending ministers have triggered public criticism, as it is considered inappropriate when the workers tried rose after France’s worst recession in decades. Lagarde, who has been leading international efforts to overcome financial crisis and debt crisis of Europe, questioned whether reducing the eighth of 28 staff based on suggestions the president “is very appropriate savings.”
She said her staff had “worked hard.” But she said the president would follow that advice. “This is a sign that we should be very careful in designing public spending.”