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China offers help to tackle euro debt crisis

Updated: 2010-12-22 15:31


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Chinahas taken steps to help European governments combat the debt crisis that has been rocking the continent in recent months, Vice Premier Wang Qishan said Tuesday at a key bilateral summit.

The two sides "should have confidence and enhance cooperation to work together for a robust, sustainable and balanced growth," Wang said during the opening of the third China-EU High-Level Economic and Trade Dialogue in Beijing.

EU Commissioner for Economic and Monetary Affairs Olli Rehn said that the European Union welcomes the support by China for its measures to stabilize the ongoing financial crisis.

China offers help to tackle euro debt crisis
Chinese Vice Premier Wang Qishan (R) gestures next to European Commission Vice-President Joaquin Almunia before the start of a news conference at the Third EU-China High-level Economic & Trade Dialogue in Beijing December 21, 2010. Vice Premier Wang said on Tuesday Beijing has done its part to help ease Europe's problems and held out hope that the crisis could soon be resolved.[Photo/Agencies]

"Economic recovery has taken hold in the EU. It is progressing and spreading from export growth to domestic demand," he said.

Rehn sidestepped several questions on whether China was planning any future action to help, saying that Beijing was clearly happy with the steps that the EU was already taking.

Several countries in the EU's so-called periphery have been struggling with high debt loads, and anxiety over their ability to pay back those debts has shaken bond markets in recent months, despite the creation of a 750 billion euro ($1 trillion) bailout fund for countries that use the euro.

Irelandlast month sought a 67.5 billion euro ($90 billion) loan from the EU and International Monetary Fund, agreeing to implement severe spending cuts as its economy staggered under the weight of massively indebted banks.

The Irish rescue followed the 110 billion euro EU-IMF bailout of Greece earlier this year and added to fears that other financially weak countries including Portugal and Spain would need bailouts, imperiling the future of the common euro currency.

Chinahas supported highly indebted European countries, offering in October to buy Greece's debt. Last week, Portugal said that China had pledged increased support for its efforts to climb out of a financial crisis, reportedly promising to buy $4 billion in Portuguese government debt.

Wang said global economic recovery is being hampered by weak demand, while world markets have excessive liquidity and are turbulent.

He reiterated that China would implement a prudent monetary policy to ensure the world's second-largest economy can maintain steady growth.

"China is taking a proactive fiscal policy and stable currency policy, while the EU is actively taking measures to combat the debt crisis," Wang said. "China and the EU should strengthen cooperation to promote strong, sustainable and all-around growth for the economies of China and EU and even the global economy."


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