“Asian countries are concerned over spill-over effect of Eurozone crisis on world trade” - BOWLES

A delegation of the European Parliament's Economic and Monetary Affairs Committee, chaired by UK Liberal Democrat MEP Sharon Bowles, has been meeting with finance ministers, supervisory authorities, stock exchange officials, and monetary authorities in Hong Kong and Singapore to discuss the impact of the Eurozone 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.

Concerns have been expressed over the impact of the Eurozone's debt crisis on EU-Asia trade, as the belt-tightening in Europe could result in lower demand for imports whilst the climate of financial instability could have a detrimental effect on trade financing instruments.

Sharon Bowles MEP 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 on-going instability."

ENDS

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