core sector communique

With European Debt Crisis Spiralling, Decisive Action is Needed

• The mounting financial crisis in Europe requires immediate decisive action by politicians
• G20 leaders should meet sooner than November summit, says former senior banker   

Dalian, People‘s Republic of China, 14 September 2011 – Banking, business and government leaders at the World Economic Forum’s Annual Meeting of the New Champions 2011 warned that the world cannot “muddle through” the spiralling European debt crisis if contagion is to be contained and some measure of stability in global markets restored. With questions swirling about Greece’s deepening fiscal woes, their impact on the rest of Europe and the financial fitness of some European banks, “the short-term banking crisis is the biggest concern Europe is facing,” said Min Zhu, Deputy Managing Director of the International Monetary Fund (IMF), to participants in a session on the global economy at the “Summer Davos” meeting. “There is no room for politicians to muddle through. They have to take decisive action today.”