Brussels, 02/02/2012 (Agence Europe) - The Chinese government is considering making a bigger contribution to help the eurozone combat the sovereign debt crisis. “China is also considering increasing its participation in the solution of the European debt crisis through the channels of the European Financial Stability Facility and European Stability Mechanism”, explained Chinese Prime Minister Wen Jiabao in Beijing on Thursday 2 February after a meeting with German Chancellor Angela Merkel. Merkel expressed delight that China was prepared to take action to ensure a stable euro as part of its overall responsibility to help ensure a stable global economy.
Europeans are putting the final touches to a leverage system to enable the EFSF to borrow money to increase its lending capacity by at least three times for struggling eurozone nations. One of the ways of doing this is to set up a co-investment fund at the IMF. China would also be able to invest its massive foreign currency reserves by making a direct contribution to the IMF. (MB/transl.fl)