Brussels, 03/11/2011 (Agence Europe) - On Wednesday 2 November, the day before the summit of G20 leaders in Cannes, the head of the WTO, Pascal Lamy, sought to be reassuring over the sovereign debt crisis, possible Chinese support for Europe and the Greek referendum.
The possibility of China's supporting the EU does not concern Lamy. Interviewed by BFM TV on the risk of the EU's becoming dependent on China if this latter provides financial support, he stated that “the Chinese will behave as investors”. “China has invested hugely in US treasury bonds and, as far as I know, the US has not become its vassal”. The European aid plan for the eurozone of 27 October “makes no provision for Chinese aid” but “puts in place a financial system which will have to borrow to be able to lend to EU countries and banks”. “It will have to borrow money on the market and, necessarily, go to those who have money”, he said.
Lamy is optimistic about the referendum announced by Greek Prime Minister George Papandreou, having been reassured by his “Greek friends” that “it can be won”. “The Greeks can see for themselves it is that or something worse”, French Socialist Lamy said on France Inter. He feels that, if Greece were to leave the euro, it would be “more painful” for its people that the various austerity plans imposed on the country, which has been in recession for four years. “As an expert, I have no doubt about it”, Lamy stated. He also foresees a threat to the stability of the region if Greece were to leave the single currency. Nevertheless, he is of the view that it is “perfectly right for the people to have their say”. In addition, Lamy argues that it is not in the interests of Greece's creditors to come to an agreement with a weakened government which could be toppled and not keep to its commitments. While “not totally ruling out” that the eurozone might collapse, Lamy stresses that the EU has to take “a further step towards a federal Europe in economic, budgetary and fiscal terms”. (EH/transl.rt)