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Euro zone sees no default spillover from Dubai woes

NANJING, China
Sun Nov 29, 2009 6:19am EST
President of the Eurogroup and Luxembourg Prime Minister Jean-Claude Juncker speaks during a news conference ahead of the China-EU summit in Nanjing, Jiangsu province, November 29, 2009. REUTERS/Aly Song

President of the Eurogroup and Luxembourg Prime Minister Jean-Claude Juncker speaks during a news conference ahead of the China-EU summit in Nanjing, Jiangsu province, November 29, 2009.

Credit: Reuters/Aly Song

NANJING, China (Reuters) - The euro zone does not risk the sort of debt problems plaguing Dubai, senior European Union officials said on Sunday.

Dubai was forced to seek a debt standstill last week, rocking global markets and reviving concerns about the fiscal health of some euro zone members, notably Greece.

Luxembourg Prime Minister Jean-Claude Juncker, who chairs the Eurogroup of euro zone finance ministers, said he saw no risk of such a default in the euro area.

European Central Bank Governor Jean-Claude Trichet "entirely" confirmed what Juncker said.

The two were speaking at a news conference after a day of talks with Premier Wen Jiabao and other senior Chinese officials.

(Reporting by Simon Rabinovitch and Chris Buckley; Writing by Alan Wheatley; Editing by Mike Nesbit)


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