Frustrated political and economic world leaders bashed the eurozone on Saturday for dragging its feet over its debt crisis, piling pressure on Brussels just ahead of a key EU summit. Japanese Prime Minister Yoshihiko Noda, speaking through a video link to the World Economic Forum's annual meeting in Davos, branded the eurozone the “major source of risks for the global economy.” “Within the eurozone there should be major steps to alleviate the concerns of the international community and the markets,” he said. “We ardently wish for the stabilisation of economies and finances in Europe.” His views were shared by other Asian leaders and by the heads of major international financial institutions. “I've never been as scared as now,” said Donald Tsang, Hong Kong's chief executive, whose four decades in public service spanned through other serious economic downturns such as the 1997 Asian financial crisis. “You need decisive action, you need overkill. You need to inspire confidence,” Tsang told Europe. “That confidence must come from decisive action of governments working together and doing it quickly,” he added, complaining that delays had already cost billions in unnecessarily mounting debt. “Two months ago in Greece you can do with 20 percent haircut. Now even 50 percent is not easy, maybe 70 percent is needed. So do it quickly. You need resolution and you need decisiveness.” While previous crises, including Asia's, were largely contained within regions, the current inter-connected economic system carries a significant wider risk of contagion. Japanese Economics Minister Motohisa Furukawa said: “With this in mind, we expect that Europe does its utmost to manage the challenges to establish a firewall to calm down the markets.” The Japanese minister also sought to distinguish Japan's high debt from that which is engulfing Europe, stressing that it was financed mainly domestically. Therefore, “we don't think that this structure will cause an immediate crisis,” he said, acknowledging nevertheless that tackling the country's debt is a “pressing challenge.” Canadian central banker and head of the international bank regulator the FSB Mark Carney said Europe not only has to take quick action but also take the right decision. “Get it right when you do something, do it right,” he said.
