World bank chief warns Europe on debt crisis

European governments need to restructure their economies to restore the confidence of financial markets as the global economy moves into a new danger zone, the head of the World Bank said today.

Robert Zoellick, a former US trade negotiator under President George Bush, said the debt crisis in Europe and the political quarrel in Washington over the US government debt limit had “unleashed a wave of worry and uncertainty about the global economy” that created steep falls on share markets.