China Expects More Decisive Action On Euro Crisis : Rajesh Sharma Money Matters Financial Services

China said the euro zone finance ministers decision to lend Spain up to 100 billion

Euros ($125 billion) to shore up its teetering banks was a welcome short term fix, but urged the bloc to take more decisive action to safe guard longer term stability. A bailout for Spains banks beset by bad debts since a property bubble burst, would make it the fourth country to seek assistance since Europes debt crisis began. Vice Finance Minister Zhu Guangyao told that China welcomed what he called the European Unions decisiveness, but added that more would need to be done. We hope these measures will be helpful in containing the crisis. This can be of great use in controlling short term risk. But, in the interests of mid or long term stability, we hope the euro zone will improve consensus and take more decisive action. With the rescue of Greece, Ireland, Portugal and now Spain, the EU and IMF have now committed around 500 billion Euros to finance European bailouts.Problems that can be solved with money are not problems the Peoples Daily said. The commentary was published under the pen name Zhong Sheng or Voice of China which is often used to give the papers view on foreign policy issues. Fundamentally Europe is facing a problem of systemic integration and survival. Overcoming the crisis depends on whether the debt ridden countries can decide on painful reforms and rouse their spirits to tackle them. The Deputy head of Chinas central bank, Zhu Jun said that euro zone has the resources to solve its own problems. But she also reiterated President Hu Jintaos earlier statement that China would not be absent from plans to enhance funds for the IMF. Euro zone policy makers are eager to shore up Spains position before a June17 election in Greece that could push Athens closer to a euro zone exit and unleash a wave of contagion. Vice Finance Minister said that China hoped Greece would stay in the euro and the euro would stay intact, citing European commitments in that regard. China has a very cautious tradition in macro policy. Therefore they focus on plan for the best and prepare for the worst. Chinas $410 billion sovereign wealth fund, China investment corp has cut its stock and bond investments in Europe as it sees rising risks of a euro zone breakup, the funds chairman told wall street journal last week. Lou Jiwel was quoted as saying that China was also unlikely to buy common euro zone bonds, should they eventually be sold as part of a resolution of the European debt crisis as the risk is too big and the return is too low. Statements from Chinas political leaders have previously been supportive of efforts by Europe to resolve a crisis now more than two years old, though soothing words have stopped short of offering commitments of injections of cash to help shore up banks and sovereign borrowers.

by: Kiran K.

POST COMMENT

"3g Starting Point" Service Platform Ios Version Has Opened Emergency Montreal Plumbing Services Does Your Santa Barbara Dental Office Provide The Services You Need? Use The Service Of Facial Treatment With Different Packages Get Rid Of Salvage Cars With Efficient Car Disposal Services Bpo Services In India Best Seo Services Seo Services In India Virtual Receptionist Services Virtual Office Service Cleaningcompanies In Sydney:offering The Best Domestic Andcommercial Cleaning Services Tothe Clients Where To Get The Best Service From Payday Loan Benefits Of Using Pay Per Click Management Services