APEC vows to fend off euro woes

9 Sep 2012, 4:47 pm   -   Source: AAP

Pacific Rim leaders have pledged to reform their economies and strengthen public finances in a bid to fend off deepening damage from the euro crisis.

Pacific Rim leaders have pledged to fend off deepening damage from the European crisis and revive flagging growth in the region by supporting open trade, reforming their economies and strengthening public finances.

The 21-member Asia-Pacific Economic Cooperation forum finished its annual summit in this far eastern Russian seaport on Sunday, vowing to work together to support growth and restore confidence in shaken financial markets.

"Our work was constructive," Russian President Vladimir Putin said of the event, which showcased Moscow's ambitions to expand trade and business along its long-neglected Pacific coast.

"We have specific results and I am satisfied with the outcome of the work."

The APEC leaders issued a statement welcoming promises by their European counterparts to help stabilise the crisis-stricken euro region and a warning against "excess volatility" and distortions in financial markets.

The APEC leaders said they would work to reduce deficits and imbalances in their own countries' finances.

"The events in Europe are adversely affecting growth in the region. In such circumstances, we are resolved to work collectively to support growth and foster financial stability, and restore confidence," the statement said.

"We remain committed to reducing imbalances by strengthening deficit economies' public finances with sound and sustainable policies that take into account evolving economic conditions."

Despite signs that robust growth in the dynamic Asia-Pacific has been sapped by reduced demand for the region's exports, Putin described the attitude among his fellow leaders as one of "constrained optimism".

Asia, generally, is not as heavily burdened as Europe with soaring social welfare costs, he said.

"There is nothing like the burden that exists in Europe," Putin said, although he acknowledged that the region faces many problems.

Given APEC's role as a consensus-led forum, the annual summit did not advance any major new policy initiatives.

The leaders' statement mostly endorsed earlier calls for freer trade, combating corruption and allowing exchange rates to fluctuate more freely.

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