Europe’s finance ministers have poured some cold water on the idea that the world is pulling out of recession. Meeting in Brussels, they said it is too soon for governments to reverse stimulus measures with the bloc still deep in the worst recession for 60 years. Ministers admitted they can’t keep pouring good money after bad, but said it’s too soon to talk about recovery.
“We will have strategic discussions over exit strategies from this recession, the fiscal side or the treatment of the financial sector, and also a strategic discussion preparing the revision of the Lisbon strategy, because we need to accompany these exit strategies on the macro-economic side,” said Joaquin Almunin, the EU Monetary Affairs Commissioner. The ministers are also proposing banking reforms to ensure a financial meltdown like this cannot happen again. They’re expected to demand that banks put away capital ‘buffers’ to protect them against the ups and downs of the economic cycle.