FT: Wen sets preconditions to help Europe

14 September 2011

Wen Jiabao, Chinese premier, has called on debt-laden European countries to put their “own houses in order” before asking China for a bail-out, in a sign of Beijing's reluctance to be cast as a saviour for the global economy.

Mr Wen also publicly linked Chinese investments for the first time with long-standing political demands, indicating a possible hardening of China’s position towards crisis-hit Europe.

“Developed countries must undertake responsible fiscal and monetary policies. What is most important now is to prevent further spread of the sovereign debt crisis in Europe”, Mr Wen said. In this context, European countries battling sovereign debt crises have been lobbying Beijing to use some of its $3,200 billion in foreign exchange reserves to buy their bonds, something that Beijing appears increasingly reluctant to do.

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