China gives support to Eurozone
CHINESE premier Wen Jiabao is expected to throw his weight behind the future stability of the Eurozone when he meets with David Cameron at Downing Street today.
As part of wide-ranging talks touching on issues from trade to human rights, Wen will discuss the use of China’s massive cash reserves and spending power to help bail-out struggling European countries, as well as to invest in euro-denominated sovereign wealth funds.
He is also expected to hammer out the detail of new trade ties between Britain and China, including more than £1bn worth of bilateral deals.
The leaders are also likely to touch on human rights issues, after protestors disrupted Wen’s visit to the MG Motor car factory in Longbridge, near Birmingham, yesterday.
Wen’s support comes as the Greek debt crisis threatens to undermine the future stability of the European Union, following a tense few weeks for the alliance, the debt-ridden country and other periphery member states.
French finance ministers and banks will also today discuss plans to reinvest the proceeds from maturing Greek government bonds in order to save the stricken nation.
Top banks in the country have agreed on a proposal, to be lodged at a meeting in Rome, that will see private creditors pledge significant financial support to Greece.