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22 August 2012

WSJ: EU official says crisis is eroding influence


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The eurozone crisis is eroding Europe's geopolitical influence and compromising the European Union's negotiating position in international circles, European Commissioner for Economic and Monetary Affairs Olli Rehn said.


"In political decision-making involving global economic matters, such as in G20 and IMF [meetings], we have constantly been on the receiving end because of the debt crisis", Mr Rehn told a gathering of Finnish ambassadors in Helsinki on Wednesday. "At this rate, Europe's status in the global economy is weakening ominously."

"We can best reinforce confidence by giving the picture of a united European team", Mr Rehn said. "European decision-making should be a confidence-building team sport, otherwise it will not accomplish anything, nor will it bear fruit."

Mr Rehn, who is also vice president of the European Commission, said politicians and investors in Asia and the US believe Europe should close ranks politically and economically as well as set up the institutions required to support the common currency. "In their opinion, the euro area problems are the result of this unfinished business, and for this reason, strengthening the euro area is the logical way forward", Mr Rehn added.

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© Wall Street Journal


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