China Considers Increasing Aid to Europe... Don't Hold Your Breath
Its official: the economy in Europe is getting so dire, even China is now considering helping out.
Chinese Premier Wen Jiabao said, “China is also considering increasing its participation in the solution of the European debt crisis through the channels of the EFSF and ESM."
Of China’s $3.2 trillion in foreign exchange reserves, 25 percent is directly tied into euro assets. On multiple occasions in the past, China has announced its support for a stable euro.
Wen noted he believes the International Monetary Fund should play a bigger role in turning around Europe’s debt crisis, but highlighted that Europe must look to itself to solve its own issues.
Like Germany, China is looking for some countries to show more of an effort to build up balance sheets before allocating more assets to the recovery. Capital levels, however, are not among the EU's largest issues. Simply agreeing on the next step seems to be filling that top spot: the Union was expected to announce something on Wednesday -- but didn’t.
Here is a little heads up for Europe: get to work and stop slacking before Germany bails out of the Union and realizes how well off they would be without the rest of you.
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Chinese Premier Wen Jiabao said, “China is also considering increasing its participation in the solution of the European debt crisis through the channels of the EFSF and ESM."
Of China’s $3.2 trillion in foreign exchange reserves, 25 percent is directly tied into euro assets. On multiple occasions in the past, China has announced its support for a stable euro.
Wen noted he believes the International Monetary Fund should play a bigger role in turning around Europe’s debt crisis, but highlighted that Europe must look to itself to solve its own issues.
Like Germany, China is looking for some countries to show more of an effort to build up balance sheets before allocating more assets to the recovery. Capital levels, however, are not among the EU's largest issues. Simply agreeing on the next step seems to be filling that top spot: the Union was expected to announce something on Wednesday -- but didn’t.
Here is a little heads up for Europe: get to work and stop slacking before Germany bails out of the Union and realizes how well off they would be without the rest of you.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
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