The head of the eurozone’s bailout fund is starting attempts to persuade China to help rescue heavily indebted European states.
Klaus Regling said after meeting with Chinese leaders that there would be no deal for now.
It is still thought that China could pay around 70 billion euros into bailout fund, which EU leaders agreed on Wednesday would be boosted to 1 trillion euros.
At the center of the crisis is Greece, which President of France Nicholas Sarkozy said should not have been let into the eurozone. He said that it was “not ready” for entry into the EU in 2001, though he did say that the new deal for the debt crisis means that the country can be rescued.
The deal, reached by EU leaders after marathon talks in Brussels, triggered a global rally in markets.
Experts say that European leaders have bought themselves at least a few weeks of eased pressure before analysts clamour for visible positive results. The market is expected to rise during this time.
China has clearly stated that it will require strong guarantees on its money, should it actually become a bailout fund contributor.
However, Klaus Regling, who is the leader of the European Financial Stability Facility (EFSF), said that he is not negotiating with China as a potential investor. Rather, he is holding consultations in China to decide on how to raise the money.
He has said that the media should not expect “precise outcome” of the talks with China on this basis.
However, Regling did say that China has been a regular buyer of EFSF bonds until this point. He said that he would present the bonds as a potential investment.
The prospects of China investing their money into the bailout fund seem good, as Beijing regularly needs to find productive ways to invest its trade surpluses.