China must adopt a 'pro-active' (ie supportive) balance policy, said the Chinese prime minister. The markets have reacted positively, and the regional index is growing by 0,6%, while i futures of the American stock market signal a modest optimism. In effect, the public budget situation in China, unlike that of many Western countries, is such as to leave room for stimulus measures: the public deficit is around 1,5% and public debt at 27% of GDP. China can therefore act as a bulwark against a possible decline in the world cycle, given its position as the second largest economy on the planet.
The G8 and European summits continue to revolve around the Greek question, but it is certain that something is changing in the way of looking at the problem. The 'austere' approach is about to give way to a relaxation or at least a more gradual application of the measures. The euro feels the tide is turning and has stopped falling. The yen tends to strengthen, despite the Bank of Japan preparing to buy another trillion yen in government bonds.
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