“The latest Greek bailout totaling 130 billion euros would merely buy time, outgoing World Bank President Robert Zoellick said in an interview in Singapore with Reuters.
 |
|
JHSB | ChinaFotoPress | Getty Images
|
“It’s too early to know, partly it depends on the actions the Greeks have to take,” he said. “I think that the European Union has dealt with Greece as one element but the core elements are really going to be the success of some of the bigger countries, such as Italy and Spain.”
But he said bailouts weren’t necessary for these two countries or Portugal.
“Each country’s situation is different and you really have three interconnected problems. For some it’s the size of the sovereign debt, for some it’s the effect on the banking industry, and for some it’s their competitiveness,” he said adding that “Spain and Italy need time to make the reforms.”
“But I do think that all this is harder to accomplish when there is a recession in Europe.”
Support from other European nations was also crucial.
“What I’ve tried to suggest, given the politics of reform in some of the Mediterranean countries, (is that) it will be important for Germany and other leaders in the process to show some prospects if the reforms are taken and how they will be supported by the other European countries.”
Zoellick heads next to China for the release on Monday of a major economic report by the bank and a Chinese government think tank, looking at economic opportunities and challenges to the year 2030.
Global Economy, China and Oil….”
If you enjoy the content at iBankCoin, please follow us on Twitter
