Crisis affects 'some countries', not financial sector: Canadian PM

8th May 2010, Comments 0 comments

Canadian Prime Minister Stephen Harper, whose country presides over the G7 and G20, said Saturday the current financial crisis was affecting certain countries but not the entire financial sector.

"Basically, this is not a crisis of the financial sector but a financial crisis affecting some governments," Harper said when questioned on a link between financial market regulations, which the G20 has committed to tighten, and the eurozone crisis.

"It reminds us that despite our stimulus measures we must talk about how to exit" this financial crisis in Toronto, where the next summit of G20 countries will be held next month, he added at a joint news conference with German Chancellor Angela Merkel.

The G7 groups Britain, Canada, France, Germany, Italy, Japan and the United States while the Group of Twenty (G20) brings together industrialised and developing economies to discuss key issues in the global economy.

Harper said it was "key that governments worldwide adopt credible measures to bring down deficits and debt in the long run."

"Looking at the level of these deficits and debts this situation cannot last forever," he added.

Merkel concurred, adding that the best way to put paid to speculators was to balance one's finances.

Harper and Merkel spoke as a number of European leaders dramatically pulled out of World War II commemorations in Moscow as they worked overtime to erect new crisis defences before Asian markets reopen on Monday.

Seeking a "watertight" defence against predatory threats to banks and wider economic recovery, EU officials scrambled this weekend to fix the size and scope of a crisis fund that may well outstrip the unprecedented Greek bailout, due to be transferred to Athens within days.

© 2010 AFP

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