On March 19th, Cai Hong, director of Center for European Studies of Guangdong Research Institute of International Strategies was interviewed by Nanfang Daily on the issue of Cyprus crisis. When it came to the reason why the European debt crisis was still extending, Cai Hong pointed out that the panic caused by Cyprus’ imposing tax on deposit was foreseeable. This crisis won’t end until the European economy takes on steady development,the deficit and debttake on fundamental retreat and countries in crisis regain the ability to issue bond. Therefore, the basic steps to solve the the European debt crisis are to strengthen economic competitiveness, achieve steady economic development and reduce the deficit and debt fundamentally.
