China Premier Wen Jiabao vows to help on eurozone debt Skip to main content

China Premier Wen Jiabao vows to help on eurozone debt

BBC

Hu Jintao (r) welcomes Herman Van Rompuy and EU delegates to the Great Hall of the People, 14 Feb 
 Premier Wen Jiabao (r) offered co-operation to help stabilise debt-ridden EU nations
China has promised to help resolve the eurozone's debt crisis, after talks with EU leaders in Beijing.

Premier Wen Jiabao offered co-operation to help stabilise debt-ridden EU nations, but made no specific promise to invest in a European bailout fund.

EU leaders have been seeking Chinese money to help bolster a planned fund of about 500bn euros ($665bn; £420bn).

In another sign of the EU's troubles, credit-rating agency Moody's earlier downgraded Spain, Italy and Portugal.

Moody's also downgraded the credit outlook for France, Britain and Austria.
The crisis in eurozone counties has intensified in recent days.

Greece passed a package of severe cuts late on Sunday, demanded by the EU and IMF in return for a 130bn euro bailout.

But the austerity measures have proved deeply unpopular and caused riots in Athens.

No commitment
 
Europe is China's biggest trading partner, with trade worth 560bn euros last year.
European leaders have long courted Chinese investment in their bailout fund.

In a joint news conference with European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso, Mr Wen said China was willing to "increase its involvement" in attempts to stabilise the eurozone.

He reiterated that China supported the EU and hoped the bloc would continue to "send clear, strong and positive messages" about stability.

But he offered no particular investment.

The BBC's Damian Grammaticas in Beijing says China has made similar promises to increase involvement in the past, but has been reluctant to follow through.

Mr Van Rompuy told reporters that he welcomed Mr Wen's comments.

"It is up to China to make its own decision in order to contribute to the stability of the eurozone," he said.

"We agreed that we will co-operate with each other in these matters."
But analysts say it appears the EU delegation failed to get the solid commitment they wanted from China.

The International Monetary Fund (IMF) warned last week that a recession in Europe could halve China's growth rates.

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