Japan’s Finance Minister Calls On Germany To Rein In Eurozone Crisis

Posted November 17th, 2011 at 10:40 pm (UTC-5)
Leave a comment

Japan has called on Germany to make more effort to rein in the spiraling debt crisis in the eurozone.

Japanese Finance Minister Jun Azumi told a news conference Friday that it is important for Germany to create what he called a “firewall” to contain the crisis. Speaking to reporters after a cabinet meeting in Tokyo, he also said there is an urgent need to prevent the situation in Italy and Spain from getting worse.

Japan's finance minister said he was closely watching the increase in Spain's borrowing costs. Interest rates on Spanish bonds reached a record high of close to 7 percent Thursday, the point at which government debts have pushed Greece, Ireland and Portugal to seek international bailouts.

Azumi noted that Spanish and Italian government bonds have come under heavy selling as market participants are questioning the political stability in those countries.

He also said there had been discussions about finance ministers from the Group of Seven wealthy nations meeting before the end of the year, but that no decision has been made.

Japan's finance minister spoke a day after the country's central bank finished a meeting to assess the state of Japan's economy. The bank's policy board concluded that the economy is growing at a slower pace than predicted and that the European crisis could have a negative effect on the global economy.