Thursday, September 22, 2011

Brazil, Other Developing Nations Lecture Europe on Bailout Conditions

Man Bites Dog, Film at 11

Traditionally the very wealthy western nations have been somewhat generous in providing aid for the less wealthy nations that find themselves in economic difficulties.  This aid almost always comes with conditions, which require the country to cut government spending, free up business from regulations, end state monopolies and so forth.  It’s a tradition.

Now that Europe finds itself at the brink of economic disintegration, several of the developing nations have stepped up to the plate to talk about aiding Europe in its time of need.

Brazil has set a high bar for providing support to the euro zone under a potential plan that would involve other large developing nations, demanding that the common currency bloc first find concrete solutions for its sovereign debt crisis

Brazil's Foreign Minister
Serious on the outside, laughing on the inside
In an interview, Brazil’s Finance Minister went on to say

"We believe the European countries can do more from their side than they are doing currently," he said. "Naturally the Brics and other emerging market countries should participate in the reconstruction of the financial system and the recovery of confidence," Mr. Mantega said.

Now no one really believes that Europe will have to call upon Brazil or China or India for help with a bailout.  Instead one suspects that the comments by the Brazilian minister were made just for the sheer joy of making them.

But it is a strong indication of just how serious the problem is in Europe that these comments could be made, and that the media could pretend to take them seriously.

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