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Chinese newspaper “People’s Daily” published a front page editorial Saturday telling Europe to quit “dilly-dallying” and get its act together, via Reuters.While the paper is not the official mouthpiece for the government, it is considered an organ of the Central Committee of the Communist Party leadership. Even an editorial is thought to be indicative of government sentiment.
Author Qin Hong pointed to a deepening of the European fiscal union as a way out of the eurozone mess.
“If it is able to set up a fiscal union, Europe can still turn its luck around. If the decision comes too late, some (euro) members may be forced to pull out,” the Hong wrote. “But if Europe keeps dilly-dallying, the situation can only worsen and gather speed. Outsiders who want to help will not dare, and then the euro zone may really disintegrate. Without doubt, this would be a huge disaster for Europe and the world.”
China has around $3.05 trillion in foreign currency reserves according to Reuters, and stands to lose big in an escalating eurozone crisis.
This commentary suggests that Chinese preoccupation with the eurozone crisis is escalating. It follows discussions last month among BRICS countries (Brazil, Russia, India, China, and South Africa) on lending to Europe to stabilise markets. BRICS leaders ultimately pointed to the G20 as the proper organisation to carry out such an action.