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European Project Still Incomplete, Australia's Swan Says

272 days ago

(RTTNews) - The European project is only "half-finished" and the region's political leaders should take further decisive action to stabilise the path of Europe's troubled economies, Australian Treasurer Wayne Swan said Friday.

"Europe's leaders must accept that the economic structure they sought to build lies incomplete," he said in Sydney.

The European Central Bank's announcement of the bond purchase program, the German Constitutional Court's verdict on the bailout fund and re-election of a pro-euro government in the Netherlands were three key events that bought them further breathing space, he said and urged Europe's political leaders to use this window of opportunity to solve the crisis.

"A monetary union standing alone remains structurally unstable. It must be reinforced by the strong foundations of a fiscal union, and the supporting pillars of a banking union and political union," he added.

In an unusual remark on US politics, Swan said "the cranks and crazies that have taken over a part of the Republican Party," are the biggest threat to the US economy. The Congress must outline a credible medium-term plan to assure markets that the US can put its budget back on a sustainable footing over time, building its fiscal strength to respond to future challenges.

On China, he said the economy's growth has moderated, but this partly reflected a very deliberate move to more sustainable growth, together with the impact of ongoing weakness in Europe on Chinese exports. Chinese policymakers have got substantial policy flexibility, Swan, who is also the Deputy Prime Minister, said.

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