Sisci 2 (Francesco, Director of the Institute of Italian Culture in Beijing, “Crisis in confidence: The China factor,” Asia Times, http://www.atimes.com/atimes/China/DG24Ad04.html) MJ
This is the essence of the failure of confidence US Federal Reserve chairman Alan Greenspan in his recent testimony to Congress spoke about, and this is the reason for the failure of the dollar vis-ŕ-vis the euro. According to figures, the US economy still outperforms the European economy at the moment, but are these figures true? Investors asked that question as they became more confident in the European economy, which had little or no experience with the new economy and creative accounting, and which had endured terrorism for decades without any September 11-type nervous breakdown. In a sentence: the US economy proved more volatile, for internal and external reasons, while the European one proved more resilient. That said, it is also true that the European market lacks the US market's ability to face its ghosts, be it the new economy, creative accounting or terrorism, and to bounce back: its volatility is also vitality. No failures in a technology-based economy or accounting have occurred in Europe, yet no technological leaps have taken place either. Despite the failures of new accounting, America's fresh ways of doing business, when not taken to the extreme, made it possible to see the potential of new business and growth; and it forced businesses to look for resources inside and outside the company in order to reap this potential. Little of the kind happened in Europe.
European Economy is resilient
Gumbel 8 (Peter,journalist and foreign correspondent, “Europe's Economy: Falling Down,” Time, http://www.time.com/time/magazine/article/0,9171,1821234,00.html) MJ
Over the past year, at a time when the world economy has been buffeted by the U.S. housing and financial crisis, slowing growth in most developed nations and soaring inflation everywhere, one of the big surprises has been Europe's relatively strong performance. The picture has been uneven, with countries such as Spain and Italy — and increasingly the U.K. — running into problems. But overall growth, especially in the 15 nations that use the rapidly appreciating euro, has confounded the skeptics. In early June, the International Monetary Fund actually revised its 2008 growth forecast for the euro area sharply upwards, declaring that it had become "a zone of stability in the international economy." Likewise, in late May, the Organization for Economic Cooperation and Development praised the European economy for its "resilience."
European Economy Resilient
European Economy proves resilient among global recession
Investment International 9(“Emerging European economies resilient in the face of global recession,” http://www.investmentinternational.com/news/business/emerging-european-economies-resilient-in-the-face-of-the-global-recession-3044.html) MJ
The resilience of the underlying economies in Emerging Europe has been one of the more positive surprises to come out of the global recession. Matthias Siller, manager of Baring Emerging Europe plc (BEE) says, “During the recent results season, earnings across the Emerging Europe universe generally beat expectations. At the same time, the economic growth outlook for the region has been revised up. Indeed, it looks as though some parts of Emerging Europe, specifically Poland, central Europe’s largest economy, will not shrink in 2009.” Matthias explains: “The Emerging European economies are strengthening in part due to the massive monetary stimulus in markets across the region. Since late 2008, Turkish interest rates have been cut dramatically and interest rates in Central Europe have also fallen, albeit not to the same extent. In Russia, interest rates have been slashed recently. Importantly, whilst these economies were fighting significant global headwinds, domestic governments, particularly the Russian government, had the money to spend on economic support initiatives. “A buoyant export sector and domestic market also add to the region’s resilience. The export sector has improved due to Germany’s quick economic recovery (much of Central Europe’s export industry is focused on Germany) and the continuous opportunities arising from the urbanisation of China. We expect those sectors relying on exports to experience volatility in the short term but the long term story remains promising.” Matthias continues: “The domestic market in the Emerging European region is also proving resilient. Whilst consumers in the West are over-burdened with debt, the situation across most of our investment universe is completely different. Consumers in Central and Eastern Europe carry a fraction of the level of debt of their western counterparts. Furthermore, consumption has held up quite well during the crisis; consumers may be down but they are definitely not out.”
EU Economy Resilient
EU economy resilient
McCreevy 8 (Charlie, Commissioner for Internal Market And Services, “The International Financial Crisis: Its causes and what to do about it,” http://www.alde.eu/fileadmin/webdocs/key_docs/Finance-book_EN.pdf) MJ
But the problems have not been limited to the financial markets. They have also spilled into the real economy. Evidence suggests that the economic situation in the US is deteriorating. Against this background, the Federal Reserve has continued to ease monetary policy, a substantial fiscal stimulus has been agreed and there has been a government-sponsored rescue package for holders of sub-prime mortgages. In the EU, the economic situation and prospects appear less worrying. The ECB has played a decisive role in stabilizing conditions in the Euro-area interbank markets, while at the same time maintaining a clear focus on its primary objective – price stability. For the moment the EU economy seems to be quite resilient but a slow-down in European growth is inevitable given the inter-linkages with the US economy. With almost daily reports of further deterioration in the US housing market and weakening consumer demand it requires something of a leap of faith to be confident that the jump in loan defaults in the US mortgage and consumer credit markets will not spread to include highly leveraged corporate given the more challenging economic environment in which they will be operating in the months ahead.