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European leaders for tighter discipline to save euro

Press Trust of India
Jan 27, 2012 at 05:24pm IST

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Davos: The ice appeared to be melting over tackling euro crisis at the Swiss alpine resort with the leaders of several European nations agreeing to press for tighter rules and greater fiscal prudence to keep the common currency afloat.

The urgency to introduce fiscal discipline and hope that the euro crisis would be resolved sooner than later was expressed by leaders of various smaller European countries at the meeting of the World Economic Forum annual meeting in Davos.

The sovereign debt crisis, exacerbated by the possibility of default by certain European nations, it is feared, might derail the fragile recovery after the global financial meltdown of 2008.

EU for tighter discipline to save euro

The hope that the euro crisis would be resolved sooner than later was expressed by leaders of various smaller European countries at the World Economic Forum annual meeting in Davos.

Leaders of both smaller and big European nations,including Germany and the UK appeared to be on the same page while making a case for fiscal discipline to restore confidence of the world in the common currency.

They also voiced optimism over the latest efforts to establish a framework for fiscal discipline to save euro.

Ireland Prime Minister, Enda Kenny, said that citizens in his country "simply went mad, borrowing" but that tight discipline including cuts in wages are now bringing the situation around.

"It's important to remember that the core problem is not Europe, but the lack of discipline among some member states," said Helle Thorning-Schmidt, Prime Minister of Denmark, a country that belongs to the EU, but not the euro zone.

Thorning-Schmidt and other leaders from Denmark stressed the importance of creating tight rules and then adhering to them.

Polish President Bronislaw Komorowski also expressed optimism, noting that Poland had survived numerous financial crises in the past, including its transition from totalitarianism to democracy.

"Today's crisis looks easier than that," he said, adding, "it can be overcome if we have the courage". Komorowski cautioned that time is limited. "If Europe doesn't improve fast," he warned, "it will lose its position as an economic leader".

Jyrki Tapani Katainen, Prime Minister of Finland, was also cautiously upbeat, noting that his country had learnt a great deal from its own crisis in the 1990s.

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