In early November 2011, the President of the European Commission (EC) José Manuel Barroso warned of a crash that would instantly wipe out half of the value of Europe’s economy, plunging the continent into a depression as deep as the 1930s slump. The result of such an economic shock would be the emergence of extremism and divisions within Europe, the former Portuguese prime minister told his German audience. “Just as the founding fathers had a vision of Europe after two devastating world wars, we must also now act with resilience and with vision towards a Europe that is strong but open,” he said. “Now is Germany’s time to show that it is fighting the cause of a strong, integrated and competitive Europe”.1
It was a serious warning, though designed and targeted at the German audience. The problem is that it may also have been too little too late. For two years, systemic and pervasive eurozone problems have been deferred or treated with partial solutions, and time is running out.
What specifically led to these very serious warnings in mid-autumn of 2011? And what would be the role of China in the rescue operations of the eurozone? This brief examines these issues by taking a broader look into the retreat of globalization in the aftermath of the global crisis of 2008 before turning its attention to the eurozone crisis. The brief then provides an overview of the evolution of the EU-China relations and considers the role and responses of China to the unfolding eurozone crisis
