'Don't Blame Europe For Crisis' Says EC Chief
The President of the European Commission has attacked critics of the eurozone's crisis management as the International Monetary Fund (IMF) raises more cash for its war chest.
After facing renewed calls for Europe to find a resolution, Jose Manuel Barroso spoke out declaring that "the crisis originated in North America" with the collapse of real-estate-linked financial products.
He also took what was seen as a subtle dig at China and other non-democratic countries at the summit in Mexico. "Not all the members of the G20 are democracies but we are democracies and we take decisions democratically. Sometimes this means taking more time," he said.
"Frankly we are not coming here to receive lessons in terms of democracy or in terms of how to handle the economy, because the European Union has a model that we may be very proud of."
He was speaking as the IMF announced a further $456bn (£290bn) for its euro crisis war chest - on top of the $430bn (£274bn) announced in April.
The so-called "Brics" - Brazil, Russia, India, China and South Africa - were among the contributors.
Tackling the euro crisis has so far dominated the G20's talks in Los Cabos.
Despite the victory of a pro-euro party in Greece's elections at the weekend, there has not yet been an announcement on the formation of a government in Athens.
Prime Minister David Cameron urged Greece's centre-right New Democracy party to move "decisively and swiftly" to form a new administration, warning that "delay could be deadly".
But he acknowledged the crisis in the eurozone could rumble on "for some time" and made clear that he is looking elsewhere in the world for trading partners to replace lost demand from the UK's traditional export markets in Europe.
There are growing signs of impatience among non-eurozone G20 nations.
World Bank chief Robert Zoellick said: "We are waiting for Europe to tell us what it's going to do."
One senior diplomat said the eurozone faces "a long, hard road that has got to be travelled" before its problems are over.
And Jose Angel Gurria, the head of the Organisation for Economic Co-operation and Development (OECD), said the crisis was "the single biggest risk for the world economy".
Mr Cameron repeated his call for "core" eurozone states like Germany, as well as the European Central Bank, to take the decisive steps towards fiscal and banking union which he believes are necessary for the euro to function properly.
The Prime Minister said G20 members in the Pacific resort town are putting "constructive pressure" on Germany.
But he acknowledged that Chancellor Angela Merkel faces political difficulties at home in delivering economic changes which could see German taxpayers making regular payments to support less competitive nations like Greece.
"We have to understand the German difficulties. It is very difficult politically to take the steps that are required economically," said Mr Cameron.
"But nonetheless if you want a functioning single currency you have to take at least some of those steps. You need to have elements of banking union, fiscal transfers and so on."
Mr Cameron said the eurozone faced three alternatives, the most positive of which would involve "action to strengthen the eurozone, to make it more coherent".
Failure to take these steps would mean that "dominoes start to fall, which would have very severe financial consequences across the world and would seriously affect us", he said.
But he made clear that he was taking seriously the possibility that the eurozone will take "enough financial action and just enough political and economic action to keep the show on the road but without solving the fundamental problems", leading to the risk of "perpetual stagnation".
And he indicated that part of Britain's preparations for such an outcome involved building trade links with emerging economies like Mexico.
"It may be that the eurozone crisis is going to continue for some time, in which case the UK must do all it can to put its own house in order and link up with the fastest-growing parts of the world," said the PM, who has brought a 25-strong trade delegation of British companies to Mexico.
what do you think?
Either support each other or "get out."
surely this is not the very decisive david cameron pretend prlmeminister of our country. the same idiot who nstruggles to stick by a whole raft of decisions his twopence happeny bunch of morons made since he took office. who exactly does he think he is and more to the point who does he honestly think is gonna take advice from him. the mans a fantasist
You'ii have to do better than this, Mcardle if you're aiming to go on to a decent Secondary. As for Redbrick, just forget it.
Shut up Dave, the EUSSR puts all of europe in chains and penury.
Decisiveness ? Cameron has no problems with that, especially when it comes to stealing benefits from the old, the needy, blind people, disabled people and terminal cancer patients. He's really good at that. Still being a tory its in his blood. Hope your enjoying the champagne dave, we are so proud of you
I agree that Cameron is not at all decisive, but a Tory? He is a closet Libdem who bows to the EU, destroys our defences and gives money we don't have to the so-called developing world.
And that has to do with the article how...?
Well lorgar, the original headline upon which i first commented was a different headline to the one that appears now. I still stand by comment though - to be a conservative is to be an immoral human being. . . They are not called the 'nasty' party for nothing
David...its best to say nothing. The euro doesn't need your help. It is quite capable of falling apart on its own :-D
Think again.....if you're able!
How is the EU a democracy? The laws are passed down from on high and rubber stamped by MEPS! How many high ranking EU officials are elected - none. How many times have they rejected unfavourable referendums? Then, held another referendum while bullying and threatening the elctorate so they get the answer they want? If there is a God this man would have been struck by a bolt of lightning!
Here, here! Well said.
And if we were a democracy we wouldn't be stuck with this unelected coalition? Mr Barrosa has hit the nail on the head.......FACT!
He is proud of the EU? It is not democratic as MEPs have little power, that lies with the Council of Ministers. The EU hasn't produced audited accounts for years! The US property boom and subsequent bursting of the property bubble may have been one of the factors that led to the world's financial woes, but it was also the European (includingh British banksk) who dashed head in and bought up 'sub-prime' mortgages, that is mortgages given to people who couldn't afford them. Let's face it, Spain, Italy and Portrugal also lived far beyond their means and were brought into the Eurozone for political reasons as they didn't meet the membership criteria.
He must have the sorest crutch in Europe. Trying to pacify both the EU and the US. That's some fence to straddle David baby. Show some guts and jump off on the opposite side to the EU. You're supposed to be a leader. Lead.
Good points David, this bloke Barroso is a dangerous and deluded communist who would sacrife us all in furtherance of political control of 500 million people's lives. The EU is anti-democratic as MEPs have no decision making powers and can only talk, which they do a lot. Even the 100 bil Spanish bail-out is a sham as the ESM bail-out fund has not been ratified by the vast majority of participants including..............Germany. Truth is Span will need 500 bil to tide them over for a just a couple of years
The EU is a disaster and was so from day 1. It was inept from the start. The first bank to go bust was a British one. The US property boom was certainly a cause of the US demise. The property boom here was one of the causes of our decline. Surely the question should is: where was the regulator? Because the banks were warning the government about CDO's because they could n't ascertain the value of the mortgages in them. You are right David
Gordon Brown told our regulator to go easy on the banks and the city as he saw them as key drivers in an economy that had lost its manufacturing base and also invisible earners such as shipping.
you are right David Wragg in your comment about Gordon Brown. Socialists don't seem to want to see it.
Interesting comments from Presidente Barroso! Be carefull...bit the loaning hand at your peril! The BBC news seem to deliberatly cut short reporting his full comments at 1 o'clock.
What do you expect from the BBC? Impartiality? Professionalism? Patriotism? That's all gone. It should be called the ABBC - Anti-British Broadcasting Coerporation.
Well said Mr Barroso. The USA certainly caused this world mess and expects the EU to face bankruptcy simply to bail them out. Meanwhile Cameron, who stands on the sidelines of Europe blowing raspberries now threatens to move our business elsewhere, ha ha. Who does this clown think he is? If he had any guts or nuance, he would get stuck into our only viable way forward, ignore the moronic anti EU prophets of doom and join up our brains of Britain with the other brains of Europe and leave the rest of the world standing. Britain, for those who think we are an island off the coast of Australia, is European geographically, historically and racially, you simply cannot ignore it!
Just because we happen to share a continent doesnt make us european, were the english, fronted by a man who only thinks he knows best!
Kurt, thats about the most ignorant comment I've yet seen posted!
Are all Swiss as abrasive as you, Roger? The ones I have met on my visits all seemed very pleasant. Can't you post a comment without insulting others? Perhaps this is EUY-style diplomacy?
David, when you see postings as incredibly ignorant as that one then I guess it does make one 'abrasive' He might just as well have said 'Just because Canberra is the Capital it doesn't mean it's Australian'? Sorry if you were offended in any way, but like my English Father, we don't suffer fools gladly!
Roger - are the Norse and the Swiss morons? They have wisely seen fit to ignore the idiocy of loading their economies with anti-competitive social legislation that only burdens economies with costs they cannot afford - and their economies are doing better than most in Europe. Just because a few ex-communist politiians (who have wrenched control of their countries from the grasp of sensible governments) believe this is the way to go, doesn't make them right. Trade with the former commonwealth and associated countries is increasing - trade with Europe is not. Wanting to trade globally like we used to and not restricting it to the local wasteground has to be sensible.
We are in this terrible union because of our control freak bilge rat gutless politicians were terrified that we would be losing out if we did not join. The Swiis are doing very nicely thankyou. And we could do too if we were leave this stinking corrupt union.---Jimmy@Brighton
David, you've certainly jumped into the cauldron here. I am both English & Swiss, in Switzerland (oder das Schwiez) we have had 2 x referendums on becoming full EU members. The first resulted in defeat by approx 70/30, the second (7 years ago) was defeated by 55/45. As my Mothers generation dies out the belief is we shall eventually become full members, the only real problems to resolve are the property laws and of course our position as the worlds bankers, though that is becoming less sustainable. The EU is a future reality, but where does this leave England...... In and succesful or totally taken over by the worlds most corrupt nation USA?
Every time I go to the shops, the car parks are full of very expensive European cars and very wealthy people everywhere. Just about every car looks new.
jokerman barroso thinks europe has democracy ha ha ha ha only if your a fat ass banker
Democracy only exists as a word on paper. It died where it was born--Ancient Greece. It is only an ideal anyway and it's not meant for realists.---Jimmy@Brighton
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He was right about one thing and that was the crisis starting in America by the brainless yanks issuing sub prime mortgages. It was compounded by European brainless bankers buying into it. Where he is wrong is thinking we live in a democracy when all major decisions are made by some faceless civil servant in Brussels and the immoveable Frau Merkel.
It's correct to say the crisis began in the USA with the sub-prime mortgages, but all of the capitalist system - in the EU, in Britain - has been brought into crisis because of de-regulation of the financial and banking systems - waved on by their political poodles of all the main parties. It is the capitalist system itself, across the globe, which is a failed system and needs to be replaced. The EU is a bosses club but is nevertheless subjected to all the flaws inherent in the capitalist system which has, over the last 30 years, destroyed much of the manaufacturing sector and boosted the 'fast buck' of finance that only benefits the rich elites. On a socialist basis, profits would have been used to create full employment, with decent pay, jobs, services, shorter working hours, rebuilding and developing the infra-structure, striking fair trade deals with the developing nations. Capitalism only creates division and devil take the hindmost. Like the nation state itself, capitalism has outgrown its usefulness. But capitalism will not leave the stage willingly, therefore new socialist parties have to be created that will 'give history a shove' and develop our productive forces to their full potential. International co-operation is better than capitalist competition.
There would n't have been any profits under socialism
Who elected you then Mr Baroso? How can you dare pontificate to the Chinese and other nations when you have never faced any sort of election yourself?
He was elected by the European political representatives of big business and nobody else. If European Union is ever going to work, it needs thorough and genuine democratic reform from the bottom up.
That's right blame everyone else,Jose. Meantime,sort your banks out before they sort you out.
The present monetary system is not working because politicians have failed to take account of how mass production is causing wealth to be distributed unfairly. This is leading to extreme riches and abject poverty in all countries, causing civil unrest. As an engineer, if I had designed the monetary system I would figure that it's no longer "fit for purpose" and would rethink it from the bottom up