says worried about European, U.S, economies
(Reuters) - Canadian Finance Minister Jim Flaherty on Tuesday expressed
concern about the continuing European debt crisis and the potential for
the U.S. economy to sharply contract at the start of next year.
who has frequently urged the European Union to quickly tackle its
problems, said the "major and immediate threat facing the world"
was the European sovereign and banking crisis.
He told a
meeting of business executives in Ottawa that the euro area economy was
unlikely to see a sharp rebound in the third quarter.
the euro area is essentially in recession," he said in the text of
his speech, noting with approval that the European Central Bank had
recently announced plans to support European sovereign debt markets.
continue to wait for intentions to become actions. European leaders must
continue to make progress on fiscal and banking unions and encourage
vulnerable countries to reform," he said.
economy is heavily reliant on the United States, where $600 billion in
spending reductions and expiring tax cuts will kick in at the start of
2013 unless a deal is struck to shrink the U.S. budget deficit.
U.S. needs to reduce its fiscal deficit over time. This point is clear.
But it also needs to ensure that there is policy certainty in the
short-term so that markets and investors can be confident that its
economic growth will not be interrupted," said Flaherty.
at present, global recovery is extremely weak in some sectors, I am
hopeful that the major difficulties will be resolved and the global
recovery will strengthen."
minister said although the Canadian economy had outstripped those of most
other developed nations since the economic recession, "we would like
to see more progress".
called on private sector businesses to invest more to help grow the