Business, Finance & Economics

EU bailout boss looks to China for funds


In this photo illustration a Greek flag is covered with one Euro coins on October 4, 2011 in Berlin, Germany.


Sean Gallup

The head of the euro zone's bailout fund has arrived in Beijing on a trip designed to persuade China to invest in a scheme to help ease Europe's debt crisis.

CNN reported that Klaus Regling, chief executive of the European Financial Stability Facility (EFSF), was to meet with Chinese finance officials and officials from the People's Bank of China.

Read more on GlobalPost: Europe reaches debt deal after marathon talks

Regling told a press conference in Beijing there would be no formal negotiations:

It's useful to come so soon after the end of the summit of the EU and to inform the officials in Beijing about the outcome of the summit. It does not mean I expect any precise outcome of our talks. There are no negotiations going on. These are regular consultations at early phase and there will be no conclusions during our visit.

According to the BBC, China is thought likely to pay about 70bn euros ($100 billion) into the EFSF. A deal reached in Brussels on Thursday morning will boost the bailout to 1 trillion euros.

Read more on GlobalPost: China makes "secret euro zone commitment"

World financial markets responded to the news positively, with stocks closed up as much as 6 percent in Europe on Thursday.

The BBC says that Beijing is demanding strong guarantees that any monetary contribution it might make will be safe.