No G20 bailout for European debt crisis
Posted Dec 8, 2011 7:43 am.
This article is more than 5 years old.
Canada’s finance minister is pouring cold water on suggestions G20 countries are attempting to drum up $600-billion U.S. to help-out the heavily indebted eurozone.
Jim Flaherty says it’s not happening, noting many members of the G20 are poorer than the European countries they have been asked to bail out.
BMO Deputy Chief Economist Doug Porter tells 660News Flaherty is right to take that position.
Porter says before anybody entertains the idea of a bailout for Europe, EU members need to better define the extent of the financial crisis and put forward a plan to address it.
The European Central Bank chopped its key interest rate by a quarter percentage point to one per cent Thursday.
The move, the second such cut in just over a month, was made to help the eurozone economy as it slides toward recession.
The cut comes ahead of a European summit called to find a solution to the debt crisis and save the euro.
Meanwhile, Standard and Poor’s says it may downgrade the EU’s triple-A rating.
