Bloomberg News

China Hopes Europe Can Translate ‘Words Into Action’ Soon

October 19, 2011

(Updates with China Foreign Ministry comments in fifth paragraph. For more on the euro crisis, see {EXT4 <GO>})

Oct. 19 (Bloomberg) -- China supports Europe’s efforts at “fiscal consolidation” and hopes European leaders will “translate their words into action as soon as possible,” said Jiang Yu, a spokeswoman for the Foreign Ministry.

China and Europe should keep their markets open to each other, she told reporters at a regular briefing in Beijing today. She was responding to a question seeking the government’s reaction to Moody’s Investors Service’s decision yesterday to cut Spain’s credit rating for the third time in 13 months.

European leaders will hold a summit in Brussels on Oct. 23 to decide on a strategy to resolve the region’s sovereign debt crisis amid increasing investor concern that governments are failing to contain the problem. Finance ministers and central bankers from Group of 20 nations warned last week that the euro area’s deepening woes threaten to derail the global economy.

China’s Deputy Finance Minister Zhu Guangyao said at the G- 20 meeting in Paris on Oct. 14 that the nation has made it clear it “supports stability in Europe and holds an open attitude towards all discussions” on increasing global lending to Europe to help stem the crisis.

Jiang’s comments today echo those of Foreign Ministry spokesman Liu Weimin on Oct. 14 when asked whether China would consider participating in a bailout of euro-area countries by increasing its loans to the International Monetary Fund.

German Chancellor Angela Merkel last week criticized governments including President Barack Obama’s administration for refusing to make the financial industry pay for the global financial crisis and vowed to push for a financial-transaction tax until it applies at least in Europe.

--With assistance from Yanping Li in Beijing. Editors: Leon Mangasarian, Jennifer Freedman.

To contact the reporter on this story: Henry Sanderson in Beijing at hsanderson@bloomberg.net

To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net


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