Don't overstate European debt crisis - by Wu Liming

Europe's chronic debt problem has caught plenty of attention recently, creating jitters and even panic worldwide.

However, the debt crisis shouldn't be overstated, and for good reason.

The European Commission has predicted that Italy's deficit-to-GDP ratio will stand at around 2.4 percent in 2012, lower than the 3 percent "red line" set by the euro zone. The Italian government has promised to realize fiscal balance by 2013. More importantly, western European countries, the backbone of eurozone, have seen steady economic development in recent years, which has prevented the crisis from hurting the bloc's foundation. Germany, the continent's economic engine, will see its economy increase by around 3 percent this year, with its sovereign rating long kept at AAA level.

In Hamburg, the country's biggest port regarded as a barometer of the economic performances of Germany and western Europe, port capacity hit a record high recently.

Many global leaders therefore believe Europe can resolve the debt crisis on its own.

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