Photo: Ivan Walsh via Flickr
The world is coming together to backstop the euro, with Japan the latest major country pledging economic support for the monetary union.Bloomberg reports Japan will buy 20% of the debt associated with the bailout of Ireland.
“There is a plan for the euro zone to jointly issue a large amount of bonds late this month to raise funds to assist Ireland,” Finance Minister Yoshihiko Noda said at a news conference in Tokyo today. “It’s appropriate for Japan to make a contribution as a leading nation to increase trust in the deal. We want to buy more than 20 per cent.”
What do China and Japan gain from this sort of move? The goal is likely to help stabilise what is one of the biggest export markets in the world. Further uncertainty in the eurozone may crimp consumer demand, which won’t be good news for either country, both concerned about a slowdown.