BERLIN: The leaders of Germany and France played down fears that the recent heavy selling of stocks around the globe due to concerns about the Chinese economy will pose a risk to the eurozone’s fragile economy.
German Chancellor Angela Merkel said she shares the view of the International Monetary Fund, that there is no indication that stock market turmoils will result in long-lasting crises.
China will do everything in its power to stabilise the economic situation. China is an important economic partner for all of us in the European Union,” she said at a news conference with her counterparts from France and Ukraine.
My impression is that if everybody does his part, China will make its own contribution too for the continuation of economic growth, and has done so during the eurozone crisis.”
Her confidence in China was shared by French President François Hollande.
The global economy is solid enough to have a growth perspective,” he said at the news conference, stressing that he expects China to get the recent turmoils under control. “They will find appropriate responses and reactions.”
Germany’s benchmark index DAX ended down 4.7 per cent on Monday, amid concern about the sharp stocks fall in Chinese and other parts of Asia.
China’s Shanghai Composite Index was down about 8 per cent, bringing its losses since its mid-June peak to roughly 37 per cent.
