German FM: We do not have "euro crisis"

HONG KONG, Aug. 31 (Xinhua) -- German foreign minister Guido Westerwelle said here on Friday that the term "euro crisis" is " misleading", and what Europe is facing now is "debt crisis", which extends into a crisis of confidence.

Addressing a luncheon held by Asia Society Hong Kong Center, Westerwelle said the crisis of confidence stemming from debt crisis is the key problem Europe has to face and solve.

"That 'the euro is in crisis' is really misleading. The euro is stable and you can trust in our common currency," he said.

Westerwelle said the provision of short-term liquidity alone would not be enough to overcome the crisis. "What we need to do is to convince the markets that the euro zone would be an area of enduring financial stability in the future".

He said the essential factor for a better future is growth, which is not the result of debts but the result of competitiveness, and competitiveness comes from structural reform.

Westerwelle suggests to build and balance three pillars, which are solidarity in Europe, the budget discipline and growth, to help solve the crisis.

In addition, Westerwelle said Germany is seeking for strategic partnerships with new centers of power as the world is changing, and the partnership is more than business, but a broader agenda including education, science and cultural exchanges.

He said Hong Kong has changed remarkably under the principle of "one country, two systems" over the past years, and Hong Kong's success in dealing with globalization provides inspiration for Europe today.

"Every crisis is an opportunity. Europe will use this window of opportunity and remain as a reliable global actor in working with its Asian partners."