China Looks to Donate Money to EU as Debit Grows

On Thursday, the second of February, the premier of China, Wen Jiabo, said that Chinese officials were looking to invest in the solution of the European debt crisis. In his joint press conference with the German Chancellor, he made very explicit commitment to becoming "more deeply involved in solving the European debt."  Through the use of the International Monetary Fund, China may be looking to begin stabilizing the overall economic distress which currently troubles the European Union. Currently, China has around 3.2 trillion U.S. dollars, in it's foreign exchange reserves. However, Wen made no exact mention that they will be using these funds. He did say, however, that China is currently looking for ways it can help bring the European Union back on track.

The German Chancellor, Angela Merkel, brought up her concerns of the efficiency of the Euro as a monetary system.  Because Germany is one of the biggest exporting nations in the world, it has benefited largely from the use of a singular currency. However, because of the lack of responsibility in spending in other countries in the European Union, the value of the Euro has gone down. Countries like Greece, which is currently seeking a 130 billion Euro bail-out, bring down the economy of other countries which use the Euro through un-cautious spending. Over the past several years, the European Union has been looking for ways to mend its economy, and hopefully, this year will yield new results.

-Nate

Sources:

• CNN
• CNN
• BusinessDay
• VoA