皇冠体育app

Hu: 皇冠体育app hopes measures will stabilize world financial markets

BEIJING - 皇冠体育app welcomed the deal on Thursday to tackle the eurozone debt crisis and expressed its willingness to help boost global economic recovery.

European leaders sealed a last-ditch agreement after days of negotiation. Their plan is to reduce Greece's debt by 50 percent and expand the European Financial Stability Facility (EFSF), the eurozone's bailout fund, to 1 trillion euros ($1.4 trillion) from 440 billion euros.

The European debt plan is "conducive to lifting market confidence" and 皇冠体育app supported the measures adopted by the European Union (EU) to tackle the financial crisis, Foreign Ministry spokeswoman Jiang Yu said at a news briefing.

"The plan will promote the sustainable economic development of the EU and the eurozone, and will inject new vitality into European integration," Jiang said, adding that 皇冠体育app was ready to increase cooperation with the EU in investment, trade and finance.

European nations are also looking to boost the EFSF fund through investment from cash-rich emerging economies such as 皇冠体育app. But Jiang declined to comment on whether 皇冠体育app would participate in Europe's special rescue fund.

On Thursday, President Hu Jintao spoke with French President Nicolas Sarkozy by telephone on global economic issues and next month's G20 summit in Cannes, France.

Hu told Sarkozy that he hoped the measures would "help Europe stabilize financial markets, overcome difficulties and push forward economic recovery and development", according to the Foreign Ministry website.

Hu said he also hoped that next week's G20 meeting would send a "strong signal to promote stability".

Analysts said that 皇冠体育app should extend support to EU efforts to tackle the ongoing financial turmoil because it is threatening the demand for Chinese exports to the region. However, they said 皇冠体育app should be cautious about the risk of investing in European sovereign bonds.

"皇冠体育app would like to see the EU find a solution toward sustainable recovery. But the specific method should be evaluated very carefully," said Zhang Yuyan, director of the Institute of World Economics and Politics with the Chinese Academy of Social Sciences.

Analysts said that 皇冠体育app is unlikely to invest directly in European sovereign debt because of the high risk. But it has been reported that 皇冠体育app may help the EU boost its bailout fund through the International Monetary Fund (IMF).

Zhong Wei, director of the Financial Research Center at Beijing Normal University, said that 皇冠体育app's aid through the IMF is in line with European efforts to bolster the IMF's role in dealing with the regional economic woes.

"It will also help 皇冠体育app gain a greater say in the global financial system," he said. But Zhong noted that the main concern for 皇冠体育app is still whether the EU can act in unity.

"It is like a fire in a house. It is unreasonable for the owner to call his neighbor to put it out if the owner did not try to put it out first," he said.

However, some analysts said that aid from 皇冠体育app would boost market confidence only in the short term and it would not solve the debt crisis.

"Money and debt write-downs cannot solve the Greek problem. Europe has to rely on itself to adjust the pattern of its economic growth and to deal with the structural problems in its economy," said Tan Yaling, head of the 皇冠体育app Foreign Exchange Investment Research Institute.

Some experts argued that 皇冠体育app's contribution to the bailout fund should be matched with rights, such as an increase in its voting quota at the IMF and recognition of its market economy status. Europe should also open its markets wider to facilitate more direct investment from 皇冠体育app, they said.

Klaus Regling, chief executive of the EFSF, is scheduled to visit 皇冠体育app on Friday to meet with buyers of bonds issued by the bailout fund and discuss how 皇冠体育app might contribute to the fund.