Prime Minister John Key will keep a close watch on developments within the euro zone over the weekend and weigh up the implications for the New Zealand economy if any decisions are made.
The signs of any resolution to the credit financial crisis in the near future were not promising.
"The outcome of the meetings in Europe will have an impact in New Zealand. Already, the OECD and Treasury have reduced their growth forecasts based on a weakening operating environment in Europe.
"We would hope the Europeans find a solution to give some confidence to the global economy," Mr Key said in Dunedin yesterday.
The slowdown in Europe was also slowing economic activity in China and one of the Prime Minister's main concerns was the risk to China and the rest of Asia from the credit crisis in Europe.
Mr Key was still optimistic about economic growth for New Zealand as long as Australia and China stayed strong.
"We will continue to make gains but for there to be very vibrant growth we need to see the United States and Europe in better financial heart and more confident."
Wall Street opened on the down side yesterday, but selling accelerated after European Central Bank president Mario Draghi reiterated opposition to significantly stepping up the bank's purchases of government bonds to staunch the crisis.
Mr Draghi said the bank's purchases were "limited" and "temporary," and that governments must "do their utmost" to resolve the crisis.
His comments spooked markets on both sides of the Atlantic hours before a crucial two-day European Union summit opened in Brussels to address the crisis.
The European worries overshadowed better-than-expected numbers on the beleaguered US jobs market.
European banks must find 114.7 billion ($NZ197 billion) of extra capital, more than predicted two months ago, to make them strong enough to withstand the debt crisis and restore investor confidence.
Reuters reported the capital shortfall across 71 banks was almost 8% higher than the 106.4 billion estimated in October, suggesting banks in Germany, Italy, Austria and Belgium need to find more cash.
Banks will look to fill any shortfall through rights issues, shrinking loans to customers, selling assets or cutting dividends, or pay to staff. Governments may have to bail out any lender unable to find cash.
In an effort to stimulate the economy, the ECB cut its lending rate to 1% yesterday and the Bank of England maintained its 0.5% rate.
The New Zealand Reserve Bank held its official cash rate on Thursday to 2.5%.
Mr Key said the low interest rate environment would continue for some time which had both good and bad aspects to it for the Government.
The good side was the Government's borrowing costs would be reduced by low interest rates, there was less pressure on inflation and homeowners with mortgages or those who rented would not face increased housing costs.
However, the bad news came for investors who relied on investment returns to supplement their income.
Mr Key remained confident the Government could continue to deliver "good results" for the country in the next three years and reiterated the need for the country to get back into surplus preferably by 2014-15 - if not earlier.
The rebuilding of Christchurch would provide an economic stimulus for the whole South Island, having a flow-on effect for Dunedin and other parts of the region.
