Reuters - Video

Edition: US | UK | IN | CN | JP

Video

Zoellick: Europe must focus on debt

Monday, September 05, 2011 - 01:53

Sept. 5 - Speaking in China, the World Bank President, Robert Zoellick, said Beijing shouldn't reply on exports for growth, and warned Europe it must fix structural growth problems to ward off the debt crisis. Penny Tweedie reports

▲ Hide Transcript

View Transcript

World Bank President, Robert Zoellick has used a news conference in China to warn Europe of the dangers of not fixing its structural growth problems. Zoellick was wrapping up a five-day visit to China, where he is leading a study on how Beijing can improve its model for economic growth. He warned the country needed to boost domestic consumption to keep growing. (SOUNDBITE) (English) WORLD BANK PRESIDENT ROBERT ZOELLICK SAYING: "But it's hard for me to see that a continued reliance on export-led and investment-led growth will work for China over the next ten years. And that challenge would maybe even become clear if the developed countries have a hard time resuming their growth." But Zoellick had a starker message for Europe, which has been struggling for over a year with a debt crisis. He urged the continent Europe to work to tackle its debt, at a time when there are fears about another global economic slowdown. (SOUNDBITE) (English) WORLD BANK PRESIDENT ROBERT ZOELLICK SAYING: "I think the European context is more complicated, because the quality of the stress test in part depends on the sovereign debt, and the quality of the sovereign debt depends on the actions that governments will have to take." He spoke as German shares began the trading week by extending the previous session's losses. Investors are already jittery about the euro zone debt crisis that threatens to spread to larger economies like Spain and Italy. But growing concerns that the U.S. economy was heading for a recession exacerbated by a halt in employment growth saw investors dump riskier assets. Robert Halver from Baader Bank reflected Zoellick's concerns. (SOUNDBITE) (English) ROBERT HALVER FROM BAADER BANK AG, SAYING: "We are still in the midst of a political crisis, in America, as well as in euro land. I see no hint that this political crisis could end, even not in this week." In China, Zoellick warned that European banks were at risk of coming under renewed pressure if debt and structural growth problems were not effectively addressed. Penny Tweedie, Reuters

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Zoellick: Europe must focus on debt

Monday, September 05, 2011 - 01:53