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Asia-Pacific

China agrees to invest in euro bailout, diplomats

media Angela Merkel and French President Nicolas Sarkozy at the Eurozone summit … Reuters/Thierry Roge

China has agreed to invest in the euro bailout fund, European Union diplomats said Wednesday. The eurozone is asking emergency economies to contribute to the European Financial Stability Fund (EFSF) which a meeting later Wednesday was set to beef up.

“China is in,” an unnamed diplomat in Brussels told the AFP news agency. "But not yet Brazil, Russia, India or South Africa." Another diplomat confirmed the news.

EFSF chief Klaus Regling is to visit Beijing on Friday, the European Union (EU) delegation in China said in a statement.

Dossier: Eurozone in crisis

The state-owned China Daily reported that China and other emerging economies had agreed to invest in the fund, citing a source close to European decision-makers, adding that they would do so via the International Monetary Fund thus boosting their voting rights in the US-based lender.

German Chancellor Angela Merkel has won the support of almost all her country’s political parties for the European plan to boost the EFSF, despite controversy over the Greek bailout in the media.

All parliamentary groups in the Bundestag, except for the hard-left Linke, have signed a statement giving her a mandate to do so, as long as Germany contributes no more money.

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