Chinese premier provides boost to embattled euro zone

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Chinese premier provides boost to embattled euro zone

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By the time the Chinese premier arrived in Britain on the second leg of his European visit he had already thrown a lifeline to the euro zone and pledged to buy billions of euros of European debt.

On his first stop in Hungary Wen Jibao annnounced Beijing would buy Hungarian government bonds and extend a billion euros in credit to the country. He stopped short of specifying how much his country would spend on the bonds.

And at a joint press conference with the Hungarian Prime Minister, Viktor Orban he confirmed China as a long term investor in Europe’s sovereign debt market. “We will consistently continue to support Europe and the euro,” he said.

Analysts believe it is a signifigant boost to the euro zone which has come under scrutiny after the EU ministers agreed a bail out for debt ridden Greece as well as loan packages for Portugal and Ireland.