EU: Yes, Our Debt Crisis is Fragile
The European Union is going to be renewing its commitment to budget cuts and other reforms at the G-20 meeting taking place in Washington D.C. this week, as evidenced by a planning document that was obtained by Bloomberg News. This document not only reaffirms the EU’s own commitment to these reforms, but it also calls on fellow members to also commit to these reforms.
The EU document is specific as it notes that, “the lack of credible medium-term fiscal consolidation plans in the U.S. and Japan,” is one of the major threats to the world economy. Other risks that are specifically mentioned include the political issues that could raise oil prices, the ongoing debt crisis in the EU, and a new slowdown in the growth of emerging markets.