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Economy

EU leaders appreciate China's support for euro

(Xinhua)
Updated: 2010-10-06 12:00
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BRUSSELS - European Union (EU) leaders said on Oct 5 they appreciated the recent statement by Chinese Premier Wen Jiabao on China's support for euro when the single currency is threatened with a sovereign debt crisis.

"I had the occasion to tell the Prime Minister (Wen Jiabao) that we had appreciated what he had said on his support on a number of treasuries in the euro area," European Central Bank President Jean-Claude Trichet told reporters after a breakfast meeting with Wen.

Trichet, together with Eurogroup chief and Luxembourg Prime Minister Jean-Claude Juncker and EU Economic and Monetary Affairs Commissioner Olli Rehn, or the so-called Eurogroup troika, met Wen on the sidelines of the eighth Asia-Europe Meeting (ASEM), which would end later on Oct 6.

Before arriving at Brussels on Oct 4 for the two-day ASEM summit, Wen visited Greece, the first eurozone country that fell prey to a sovereign debt crisis and triggered a contagion threat in the whole region.

The Chinese premier said there that China is firm in supporting Greece, and is ready to expand cooperation with Greece and help the country through its current difficulties. He also pledged to keep holding of eurozone treasuries in support of the euro.

"China will not reduce its euro-bond holdings and China supports a stable euro," Wen said in a speech at the Greek parliament on Sunday.

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Rhen said the statement would give a helping hand to the EU in restoring financial and economic stability.

"I also expressed our gratitude for the statement by Prime Minister Wen about supporting a stable euro and also Greece. That is endorsing the work and also the measures we have taken in the euro area," he said.

Juncker said China's recent growth performance has been an important factor in overcoming global financial and economic crisis.

Meanwhile, the three key euro policy makers said they welcome the decision taken by the Chinese government in June to increase the flexibility of renminbi's exchange rate.

The People's Bank of China, China's central bank, announced a decision on June 19 to proceed further with the reform of the exchange rate regime to enhance the flexibility of the renminbi's exchange rate.

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