The world's top economies are slowing with the eurozone set to shrink briefly, and rapid action by EU leaders to enact promised rescue measures is key to global recovery, the OECD said on Monday. Days before a summit of G20 leading nations in Cannes, southern France, amid a threat of recession in some countries, the OECD called on leaders to act fast and hard to keep promises and also to boost growth. It also pressed the European Central Bank to ease its base interest rate. "Much of the current weakness is due to a generalised loss of confidence in the ability of policymakers to put in place appropriate responses," OECD chief Angel Gurria said in a pre-summit statement. "It is therefore imperative to act decisively to restore confidence and to implement appropriate policies to restore longer-term fiscal sustainability..." he added. G20 leaders are to adopt at the two-day summit beginning on Thursday action an plan to boost growth, following up on their successful work to prevent … [Read more...] about OECD says EU economy set to ‘shrink’
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WTO largely backs China over EU in shoe dumping case
A World Trade Organization panel largely backed China on Friday in a complaint about European Union import duties on Chinese footwear, dealing a partial victory also to European importers and retailers. Photo: AFP In a ruling, the panel told the European Union to bring its method on calculating anti-dumping duties into conformity with WTO rules and said the bloc had acted inconsistently with WTO law. But it said there was no need for the EU to change the disputed tariffs because they had already expired. It also rejected the bulk of China's claims on behalf of individual Chinese shoe makers and some of its more specific complaints. The case is the second brought by China against the EU at the WTO. In July, China won a similar victory against EU duties on what Europe said were unfairly cheap Chinese screws and bolts. In that case, a panel condemned the way Europe assesses duties against countries it deems not to be market economies, such as China, Vietnam and Cuba. The EU's … [Read more...] about WTO largely backs China over EU in shoe dumping case
EU bailout fund chief says ‘no deal’ with China
China and the head of Europe's bailout fund dampened hopes Friday that Beijing would come to the aid of the debt-stricken EU, but left the door open for a deal with the world's second-biggest economy. China's vice finance minister, Zhu Guangyao, welcomed an EU agreement on measures to address the debt crisis and said the country was still considering whether to invest in the bailout fund.Photo: AFP Expectations for a strong commitment from China had been high ahead of Klaus Regling's visit to Beijing, with the Financial Times quoting a source saying a cash injection could top US$100 billion (70.5 billion euros). But publicly the government has been noncommittal and Chinese state media has said that Europe must take responsibility for the crisis and not rely on "good Samaritans" to save the continent. "There is no special deal" with China, said Regling, in Beijing for talks with China's central bank and finance … [Read more...] about EU bailout fund chief says ‘no deal’ with China
EU confident of agreement Wednesday while focusing on growth
European Union (EU) leaders expressed confidence on Sunday that an agreement on a comprehensive package to deal with the debt crisis can be achieved on Wednesday, while the European Council summit also stressed the importance of boosting growth. CONFIDENT OF AGREEMENT "We are working in a spirit of compromise and a spirit of making an ambitious comprehensive plan. And we are confident that we will get an agreement on Wednesday," European Council President Herman Van Rompuy told a press conference in Brussels following the EU summit. President of European Council Herman Van Rompuy (R) talks with President of European Commission Jose Manuel Barroso (L) during the Eurozone Summit at EU headquarters in Brussels, capital of Belgium, October 23, 2011. (Xinhua/Thierry Monasse) Van Rompuy played down the Franco-Germany divisions, saying "I saw a French president and a German chancellor determined to work together, and together with the other eurozone members, to solve the debt crisis." … [Read more...] about EU confident of agreement Wednesday while focusing on growth
EU discusses post-Brexit budget
Finance for some sectors will be reduced to allocate resources for joint projects. At a conference in Brussels, EC President Jean-Claude Juncker said the EU is reaching the limit in its capabilities. The budget for 2014-2020 period is about 963 billion euro. Despite Brexit, the UK said it will pay its substantial share until 2020. From 2021, the EU will have to prepare for a new financial framework without the UK.Budget chief Guenther Oettinger said the UK’s departure will deprive the EU of 12-13 billion euros from its annual budget. He called for saving from current expenditures to make up for 50% of shortfall and finding new investment sources. … [Read more...] about EU discusses post-Brexit budget