Europe’s response to debt crisis disappointing, says Canadian minister

EUROPE’s response to the sovereign debt crisis spreading across the eurozone and threatening the global economy has been “disappointing” and has allowed the problem to grow, according to an international finance minister.

Addressing an Ireland-Canada Business Association lunch in Dublin yesterday, Canadian finance minister Jim Flaherty said “too much time has been wasted and too many opportunities have been missed” by policymakers; and warned that unless decisive action is taken shortly, another “full-blown” global crisis is inevitable; “albeit, this time without the full arsenal of policy weapons at our disposal”.

“The good news is that this crisis can still be contained and reversed, if nations summon the determination to do so. The bad news is that this crisis has already cost way too much. If this crisis is left unaddressed, it will eventually become too big for Europe to solve. This is why immediate action is needed. Delays will only make necessary choices more difficult, and this crisis more costly.