Thursday, 30 August 2012

Wen Tells Merkel Spain, Italy, Greece Need More Reforms

By Bloomberg News - Aug 30, 2012 10:34 AM GMT+0400

Chinese Premier Wen Jiabao told visiting German Chancellor Angela Merkel that Spain, Italy and Greece must take “comprehensive measures” to prevent a worsening of the euro zone’s sovereign debt crisis.
“The main worries are two-fold: first is whether Greece will leave the euro zone,” Wen said in remarks at Beijing’s Great Hall of the People. “The second is whether Italy and Spain will take comprehensive rescue measures: resolving these two problems rests with whether Greece, Spain, Italy and other countries have the determination for reform.”
Angela Merkel, chancellor of Germany, center right, tours the Nanluoguxiang hutong in Beijing, China, on Thursday, Feb. 2, 2012. Merkel is on a two-day official visit. Photographer: Nelson Ching/Bloomberg
Chinese Premier Wen Jiabao told visiting German Chancellor Angela Merkel that Spain, Italy and Greece must take “comprehensive measures” to prevent a worsening of the euro zone’s sovereign debt crisis.
Wen Jiabao, China's premier, right, and Angela Merkel, Germany's chancellor attend the welcoming ceremony at the Great Hall of the People in Beijing. Photographer: Mark Ralston/AFP/Getty Images
Europe’s slump is deepening as governments struggle to restore investor confidence and companies eliminate jobs. Economies are stalling or contracting amid concern about a possible Greek exit from the euro and the ability of Spain andItaly to service their debts.
Wen said he was more confident about the euro zone after meeting today with Merkel. Their meeting coincided with the signing of a $3.5 billion agreement for China to buy 50 Airbus SAS A320 aircraft, one of more than 10 agreements signed today, the official Xinhua News Agency reported.
In addition to winning contracts for German companies, Merkel is aiming to convince Wen and other Chinese leaders that the euro zone is a good place to invest. Gross domestic product in the 17-nation currency bloc fell 0.2 percent from the first quarter, when it stagnated, the European Union’s statistics office in Luxembourg said August 14.
“Recently, the European debt crisis has continued to worsen giving rise to serious concerns in the international community,” Wen said. “Frankly speaking, I am also worried.”
To contact Bloomberg News staff for this story: Michael Forsythe in Beijing at
To contact the editor responsible for this story: Peter Hirschberg at