Thursday, November 3, 2011

No Cannes Do

The G20 are meeting in Cannes. The Greek situation is in flux, and it's not clear that Papandreou's government will survive, or what might become of the referendum. President Sarkozy is trying to wrest a promise or two from Hu Jintao. The latter has rather inscrutably said that he believes Europe itself has "all the wisdom and ability necessary" to resolve the crisis while also assuring Christine Lagarde of his confidence that the IMF under her leadership will know how to "speed up its reform" to meet the emergency. This does not sound like a full-throated pledge by China to offer whatever assistance may be needed. More like a warning: you made this bed, now lie in it. Meanwhile, Mr. Juncker has made it clear that the interests of Germany and Luxembourg come first: "We are considering the issue of how we can ensure that no harm comes to our people in Germany, in Luxembourg, elsewhere in the euro zone."

Meanwhile:: "Le soutien chinois peut atteindre 100 milliards de dollars, mais à deux conditions, a expliqué un haut responsable de la banque centrale de Chine, Li Daokui : avoir la preuve de l'efficacité du Fonds européen de stabilité financière (FESF) mais aussi la garantie des pays les plus solides de la zone euro, l'Allemagne et la France, "car on ne peut pas exclure que l'affaire ne fonctionne pas".
In short, sauve qui peut.

1 comment:

FrédéricLN said...

... and "100 milliards" is kind of a joke, because, if China won't lend more, who will bring the missing 650 ? Tonga ?