A delegation of the European Parliament’s Economic and Monetary Affairs committee (ECON) led by its chairwoman UK Lib Dem MEP Sharon Bowles has been meeting Ministers of Finance, Supervisory Authorities, stock exchange officials and monetary authorities in Hong Kong and in Singapore on the impact of the Eurozone debt crisis on Asian markets as well as developments concerning EU financial services legislation in line with the G20 agenda, such as capital requirements for banks (Basel III) and over-the-counter derivatives.
Participants expressed concerns over the impact of the Eurozone’s debt crisis on EU-Asia trade, as the belt-tightening inEuropecould result in lower demand for imports whilst the climate of financial instability could have a detrimental effect on trade financing instruments.
Sharon Bowles underlined the importance of trade financing for economic growth and jobs and is openly arguing for measures to support trade finance in order to minimise the external impact of the debt crisis.
“Officials and businesses in the Far East are naturally concerned about the prolonged sovereign debt crisis in the eurozone and the inability of Member States to get on top of the problem. Their concerns highlight that it is not just a domestic matter for Europeans but is sending shock-waves around the world.
The second bailout for Greece agreed this week by Eurozone finance ministers and rescheduling of a large part of its debt under the PSI will help calm fears abroad as much as at home. However it remains essential to put in place measures to support vital trade financing that will keep goods circulating, and contain the damage from ongoing instability.”