USA: The head of the World Bank urged Europe, Japan and the United States to take action to avoid dragging down the global economy

Record ID: 560720

  • Title: USA: The head of the World Bank urged Europe, Japan and the United States to take action to avoid dragging down the global economy
  • Date: 15th September 2011
  • Summary: WASHINGTON D.C., UNITED STATES (SEPTEMBER 14, 2011) (REUTERS) ZOELLICK LEAVING ROOM
  • Embargoed: 30th September 2011 13:00
  • Keywords:
  • Location: Usa, Usa
  • Country: USA
  • Topics: Finance,Politics
  • Reuters ID: LVA7TQ0KNOILPUVNEMJGS77PTJQG
  • Story Text: The head of the World Bank, Robert Zoellick, said on Wednesday (September 14) the world had entered a new economic danger zone and that Europe, Japan and the United States all need to make hard decisions to avoid dragging down the global economy.
    "Europe, Japan, and the United States must be responsible stakeholders, too. They have procrastinated for too long on taking the difficult decisions, narrowing what choices are now left to a painful few. The global economy has entered a new danger zone with little running room as European countries resist difficult truths about the common responsibilities of a common currency," Zoellick said in a speech at George Washington University, ahead of meetings of the World Bank and International Monetary Fund next week.
    Zoellick said European countries were resisting difficult truths about their common responsibilities, Japan had held off on needed economic and social reforms, and political differences in the United States were overshadowing efforts to cut record budget deficits.
    Just as those very countries had called on China to be a responsible global stakeholder as a rising economic power, so too should they act responsibly to get a handle on their own economic problems, Zoellick said.
    "If we do not get ahead of events; if we do not adapt to change; if we do not rise above short-term political tactics or recognize that with power comes responsibility, then we will drift in dangerous currents. That is the lesson of history for all of us, developed and emerging economies alike. But if we get it right, the potential is enormous," he said.
    The meetings of global finance and development leaders in Washington next week will focus on Europe's debt crisis and the risk of a Greek default, which has led to growing alarm in financial markets.
    Mixed signals from European leaders have escalated concerns the 17-nation euro zone may be unable to unite behind a common approach to tackle the crisis.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register