EU reform summit focuses on Asian economic crisis<\/p>\n
CARDIFF (Reuters): Asia's economic crisis weighed on the
\nEuropean Union summit yesterday, with British Prime Minister Tony
\nBlair telling fellow leaders the world economy faced its greatest
\nrisks in almost two decades.<\/p>\n
Blair, chairing the summit called to discuss political and
\neconomic reforms ahead of the 15-nation bloc's ambitious single
\ncurrency and enlargement projects, warned that Europe could not
\nshrug off Asia's financial woes.<\/p>\n
"Our economies will not emerge from this turmoil without being
\naffected by it and we have to decide how we intend to react," a
\nBritish spokesman quoted Blair as telling the summit.<\/p>\n
The Japanese yen slid to an eight-year low on the foreign
\nexchange market, sinking to 146.55 against the dollar -- a drop
\nof 1.4 percent from its level in late European trading last
\nFriday.<\/p>\n
The Asian turmoil has stoked fears that long bull runs on
\nEuropean and U.S. share markets could be dented amid fears of a
\nfresh round of competitive currency devaluations in Asia.<\/p>\n
French Prime Minister Lionel Jospin told the summit that the
\nEU should rapidly assess the risks posed by Japan's economic
\ncrisis and consider how to respond.<\/p>\n
It was vital for Europe to capitalize on the EU's current
\npositive economic outlook to ensure lasting growth, he added.<\/p>\n
The 1999 launch of the euro single currency in 11 of the 15 EU
\nstates would create a euro zone with a single monetary policy and
\nthis in turn would require greater coordination on economic
\npolicy, Jospin said.<\/p>\n
In Brussels, European Trade Commissioner Sir Leon Brittan
\nwarned there could be far-reaching consequences if the yen
\ncontinued to fall and dragged down China's currency, the yuan.<\/p>\n
"The decline of the yen, if it continues, is clearly going to
\nput pressure on China's currency. This could have far-reaching
\nconsequences for the region and the world economy," Brittan told
\na Brussels seminar.<\/p>\n
Brittan said Europe and the United States would have to bear
\nthe main brunt of the Asian crisis, having to take in more cheap
\nimports while seeing exports decline.<\/p>\n
Britain, under fire for an insipid six-month stint as EU
\npresidency, asked EU leaders to focus on how the bloc can be made
\nto work for its 360 million citizens, many of whom see Brussels
\nas a remote but powerful influence on their lives.<\/p>\n
Blair said he wanted a political vision for the bloc "where
\nwe're moving Europe closer to the people rather than (having)
\nsome European federal superstate".<\/p>\n
The aim of economic reform was to "move us away from heavy
\nregulation towards help on jobs, for small businesses and
\ncompleting the single European market to help trade and
\ninvestment," he told reporters earlier.<\/p>\n
The leaders also kicked off a debate to review the Union's
\ndecision-making processes, costly farm and regional funding
\nprograms and budgetary issues.<\/p>\n
German Chancellor Helmut Kohl, trailing in opinion polls ahead
\nof a September election that could end his 16 years in power, is
\nseeking a cut in Bonn's EU payments.<\/p>\n
Germany, burdened by the costs of reunification and millions
\nout of work, insists it should not have to bankroll poorer
\nsouthern partners who, in turn, will not give up their Brussels
\nhandouts to make room for even poorer states from Central and
\nEastern Europe.<\/p>\n
Ten former Soviet bloc nations and Cyprus have been invited to
\nstart the accession process, prompting European Parliament
\nPresident Jose Maria Gil-Robles to warn that enlargement could be
\ndelayed because of the need to overhaul EU institutions.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/eu-reform-summit-focuses-on-asian-economic-crisis-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}