US Secretary of the Treasury Visits Europe to Seek for IMF’s Rescue, Market Analysts Say “Impossible”
Right at the time that the euro area is experiencing market panic, the U.S. Secretary of the Treasury Timothy Geithner will visit Europe on Dec. 6. The market evaluation indicates that Geithner will assert that the IMF should interfere in the salvation of Europe. However, it will be hard to reach a consensus about this assertion at the EU Summit and while visiting European countries.
Although plans to cut the budget in Italy have just been approved, “how to salvage” the economy is another big problem. The largest economy in the world, the U.S., is about to lose patience. From Dec. 6 to Dec. 8, Geithner will visit Frankfurt, Berlin, Paris, Marseille, and Milan, and have brief conferences with Sarkozy, the president of France, Monti, the prime minister of Italy, and Rajoy, the prime minister of Spain.
Will Geithner’s visit to Europe and the upcoming EU Summit restore confidence in the market? The opinion of Gilles Moec, an economist for Deutsche Bank, represents the general anxiety from the capital market. Europe’s debt crisis has lasted too long and it really needs to be surprised.
Moec said, “Basically, we need to give the market a surprise first – assuming that the market automatically changes its judgment, and I believe that confidence will not be restored until next year. The surprise includes assertions from leaders of European countries, and builders of united financial leagues, and the European Central Bank upholding its responsibility to release euro bonds.”
But all these may be Moec’s own wish. Mingli Liu, an expert in European economy from the China Institute of International Relations believes that it would be impossible to reach a consensus.
Mingli Liu said, “It would be difficult for two or three countries to reach consensus. If [representatives from] 27 countries need to sit together to research the consensus, every country has its own interest to consider, and no one wants to compromise. Even if the 27 countries compromised for a consensus, the treaty will not be approved until parliaments in each country say so.”
Although plans to cut the budget in Italy have just been approved, “how to salvage” the economy is another big problem. The largest economy in the world, the U.S., is about to lose patience. From Dec. 6 to Dec. 8, Geithner will visit Frankfurt, Berlin, Paris, Marseille, and Milan, and have brief conferences with Sarkozy, the president of France, Monti, the prime minister of Italy, and Rajoy, the prime minister of Spain.
Will Geithner’s visit to Europe and the upcoming EU Summit restore confidence in the market? The opinion of Gilles Moec, an economist for Deutsche Bank, represents the general anxiety from the capital market. Europe’s debt crisis has lasted too long and it really needs to be surprised.
Moec said, “Basically, we need to give the market a surprise first – assuming that the market automatically changes its judgment, and I believe that confidence will not be restored until next year. The surprise includes assertions from leaders of European countries, and builders of united financial leagues, and the European Central Bank upholding its responsibility to release euro bonds.”
But all these may be Moec’s own wish. Mingli Liu, an expert in European economy from the China Institute of International Relations believes that it would be impossible to reach a consensus.
Mingli Liu said, “It would be difficult for two or three countries to reach consensus. If [representatives from] 27 countries need to sit together to research the consensus, every country has its own interest to consider, and no one wants to compromise. Even if the 27 countries compromised for a consensus, the treaty will not be approved until parliaments in each country say so.”