This international roundtable, which saw the participation of a delegation from the Chinese Ministry of Foreign Affairs, provided an opportunity to discuss developments in the euro crisis and China’s views regarding the same. The core issue debated regarded the nature of the crisis and the motives behind the speculative attacks against certain countries. It was noted that China has always shown an active interest in the future role of the euro as an international currency, to which may be added the real opportunity today of a strong commitment from China both in terms of investment in infrastructure and manufacturing sectors, as well as in terms of funding portions of debt.
It was pointed out that, since its inception, the euro has been a venture characterized by a strong political element, but has suffered from a certain inadequacy on the part of the institutional mechanisms for managing EU economic policies. In essence, the pressures of the global crisis, accompanied by a growth in competition on international markets, has sorely tested the resilience of the political arrangements underpinning the euro. Against this backdrop, imbalances within the eurozone have emerged all too clearly and forced governments to take extraordinary measures. These structural causes have in turn been compounded by the peculiar nature of the market attacks perpetrated, which – as in the case of Italy – do not always seem warranted by actual debt and solvency figures. The attacks therefore appear to be aimed precisely at testing the political mettle of intra-European entente.
According to the participants, realistic solutions require more cohesive intergovernmental cooperation aimed at arriving at a genuinely common economic policy. The institutional blueprints and arrangements may vary, but this – it was felt – is the key issue.
Both the Italian and Chinese participants emphasized that it is in the interests of the global economy as a whole for the euro to be saved and placed on a firmer footing. The possible emergence of a more integrated core of EU economies must be reconciled with common institutional mechanisms: it is therefore crucial for a delicate balance to be struck between political and economic demands. Indeed, the avoidance of any worst-case scenarios involving a traumatic split would also be in Germany’s interests.
It was stressed that in this complex scenario, it is essential for European economies to remain open to global trade and investment, just as it was acknowledged that China clearly has a growing role to perform as a major player on the world economic stage.