September 19, 2011
World Bank President Robert Zoellick warned that Europe can't count on cash-rich emerging nations like China and Brazil to come to the euro zone's aid and said European leaders needed to make fundamental decisions about the direction of the currency union.
"There's no silver bullet. There's no panacea," Mr. Zoellick said in an interview on Friday while European finance ministers were meeting in Poland. "Nobody is going to come in with a big bag of money to buy out the problem."
European officials have looked to Brazil, China and other big emerging markets, which together have trillions of dollars in reserves, as places to sell large amounts of sovereign debt. Some of the big markets have played along, at least rhetorically. Brazil has publicized a meeting of the so-called BRICS nations—Brazil, Russia, India, China and South Africa—this week in Washington, which it said would discuss euro-zone problems. China also has hinted it could provide financing in exchange for trade concessions.
International Monetary Fund chief Christine Lagarde last week called the idea of joint BRICS aid an "interesting development."
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