Recovery still fragile, Europe must contain contagion: Pranab

Terming that the global recovery is still fragile, finance minister Pranab Mukherjee today said it is Europe's responsibility to contain the contagion created by sovereign debt crisis in Greece and a few other Eurozone economies.

Terming that the global recovery is still fragile, Finance Minister Pranab Mukherjee today said it is Europe's responsibility to contain the contagion created by sovereign debt crisis in Greece and a few other Eurozone economies.

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Mukherjee today told reporters that he had told G-20 ministerial in Busan that the global recovery has still not taken firm roots.

"We analysed the overall global financial situation, and in that context I gave my perception that still the recovery is fragile. In between, the events in the Eurozone, particularly the crisis in Greece, have taken place," Mukherjee said.

The stock markets plunged today losing nearly 2 per cent, after fears of debt crisis in Europe deepened. The BSE benchmark Sensex tanked 337 points on these concerns.

Referring to the risks that the crisis in Greece could pose to the global economy, Mukherjee said, "it is Europe's responsibility to contain the contagion because faster recovery in Europe is essential for the developing countries both for FDI and exports."

Europe accounts for 20-22 per cent of the country's exports of about $ 176 billion.

Mukherjee returned to the Capital on Sunday, after taking part in G-20 finance ministers meeting in Busan in South Korea on June 4-5.