China committed to support Euro

Beijing has committed to support the euro area in exchange for policies to reduce the deficit and drastic budget cuts, reports the Sunday Times.

According to the newspaper, the Chinese representatives at the meeting of G20 finance ministers Saturday in Paris said that Beijing was ready to invest tens of billions in the euro area through the purchase of infrastructure in the indebted countries.

The newspaper reported, citing a source close to the talks that Chinese banks could also increase their purchases of sovereign debt in the euro area.

“China wants to ensure that Europe knows the extent of the hole and it’s not going to widen, before starting to fill,” said a source quoted by newspaper.

The G20, meeting Saturday in Paris, recognized the progress made by Europeans in the resolution of debt crisis, but, worried about darken global growth prospects, they were also eager to keep their promises.
French Finance Minister Baroin promised a breakthrough at the EU summit in Brussels on October 23.