THE stern fiscal measures adopted by Europe are not supposed to affect growth in India as a slowdown could escort to consequences influencing economies around the world. Finance Minister P Chidambaram told a gathering at a daylong 10th ASEM Finance Ministers summit in Bangkok that fiscal caution, together with liberalised trade and investment into major economies of Asia, would benefit all.

Subsequent to review of the economic situation in Asia and Europe, finance ministers and officials from the two continents decided to set up a working group for put forward ways for enhancing trade and investment.

The European Commission Vice President Olli Rehn attributed the slowdown in world trade to "creeping protectionism" and said world trade had slowed recently on account of micro economic conditions and also "creeping protectionism".

He added further that any further protectionism should not be given and the best way would be conclude Doha round of trade talks under the WTO.

The ministers and officials also discussed the importance of Europe implementing medium-term crisis resolution to condense volatility of financial markets. They emphasized that Asia and Europe need to craft more investment and employment opportunities to combat economic troubles, as a spark of crisis in one area could cause turmoil in the other region of the world.

Besides views on regional financial arrangements in Asia and Europe was shared and views were exchanged in lessons learnt in the Asia and Europe crisis.