"The problem is that the economic and political difficulties of the advanced economies, mainly the U.S. and euro area, are having negative spillover effects on international governance," he said, "They are negatively affecting the G20 and the functioning of the IMF through delays in the implementation of the agreed reforms".
There could be "several potential negative spillover effects," the commission has warned in an internal briefing paper.
We call on advanced economies to take into account the negative spillover effects on the emerging and developing countries of prolonged unconventional monetary policies.
"What I want to avoid is the negative spillover of some decisions that can create problems for the good functioning of the internal market".
They argue that big budget deficits in Italy or elsewhere might indeed have a negative "spillover effect" on the other euro members.
"We will implement prudent and responsible macroeconomic policies to ensure mutually reinforcing effect of growth and to maintain economic and financial stability in the region, and prevent negative spillover effect".
"Negative spillover effects from the sovereign debt crisis appear to have worsened banks' ability to obtain funding," the central bank said in releasing the results of its quarterly lending survey.
"It's in Merkel's self-interest to keep the German economy going and to reduce this negative spillover," said Justina A. V. Fischer, an economist and senior researcher at the University of Mannheim in Germany.
"The purpose of the required assistance is to contain the risks to the Cypriot economy, notably those arising from the negative spillover effects through its financial sector, due to its large exposure in the Greek economy," the government said in a statement.
Therefore, negative spillover occurs more frequently than flight to quality in these emerging markets.
The flight to quality or negative spillover occurs more frequently at the beginning of a crisis.
