Europe Asks China for Bailout Help

But China wants guarantees first
By Kevin Spak,  Newser Staff
Posted Oct 28, 2011 9:08 AM CDT
Europe needs China to bail it out.   (Shutterstock)

(Newser) – The head of the eurozone bailout fund met with Chinese leaders yesterday to urge them to invest in its rescue scheme. No agreement has been reached yet—indeed, Klaus Regling said that there weren’t even formal negotiations—but the expectation is that China will toss about $100 billion into what will ultimately be a $1 trillion fund, the BBC reports. But China has indicated that it’ll need ironclad guarantees of its investment’s safety.

Regling said he would present the contribution to China as a safe commercial investment. A Chinese finance official said they’d need to “carry out serious studies before we can decide on investment,” and World Bank President Robert Zoellick warned that China’s help wouldn’t be free. “I don’t think that China will just come in as a white knight to try to provide money just to bail out Europeans,” he said.

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