Thursday, February 2, 2012

China's Wen says may become more involved in EU rescue funds

China is considering greater involvement in the European Financial Stability Facility (EFSF) and the upcoming European Stability Mechanism (ESM), Chinese Premier Wen Jiabao told journalists on Thursday.

Wen made the comments in a joint media briefing with visiting German Chancellor Angela Merkel in Beijing, but he did not made any explicit financial commitment. He said China is still studying how it might lend further support.

The ESM, a 500-billion-euro permanent bailout fund that is due to become operational in July, is expected to replace the EFSF, a temporary fund that has been used to bail out Ireland and Portugal and will help in the second Greek package.

Wen said it's important to resolve the euro debt crisis and Beijing will support Europe's efforts in stabilizing the euro. Source