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Business / Economy

China calls for a stable Greece after election

(Xinhua) Updated: 2012-06-18 14:40

LOS CABOS - Chinese Vice Finance Minister Zhu Guangyao on Sunday called for stability in Greece following a crucial election in the debt-ridden European country.

"We hope that the new (Greek) government will be on solid footing and can maintain stability, since stability is important for the promotion of development," said Zhu at a press briefing held by the Chinese delegation prior to a major Group of Twenty (G20) summit due to be in Los Cabos, a Mexican seaside resort city, on Monday and Tuesday.

His remarks came after the pro-bailout conservative New Democracy party beat the anti-bailout leftist Syriza party in Greece's crucial election Sunday.

"With efforts by the Greek people and the government, we hope that the country can maintain a stable economy and maintain economic growth," said the Chinese senior official.

"We also hope that the Greek government and people, working together with the European troika, namely the EU, the European central bank, and the IMF, will stabilize the Greek economy and financial markets," Zhu told reporters.

"So it can return to the international financial market in early days and regain financing ability," he added.

Regarding the proposed resource increase of $430 billion for the International Monetary Fund (IMF), Zhu reiterated the position by Chinese President Hu Jintao, who said at last year's G20 summit in Cannes, France, that China will not be absent from the international bailout based on consensus.

"At the same time, the IMF should quicken its quota reform to reflect the changing international economic structure in order to enhance China's voice and representation in the IMF," he said.

Zhu welcomed the major policy measures taken by Europe to tackle the sovereign debt crisis, including the establishment of the 800-billion-euro firewall.

"We are confident that European countries can rely on themselves to untangle the problem. We also have the confidence that Europe has the capacity and wisdom to resolve the European sovereign debt crisis," he continued.

Zhu also spoke of the downside risks faced by the world economy, saying that China needs to face up to the challenge by taking macro-economic policies.

He admitted that China' s economy is under downside pressure, although the current Chinese economy falls within the expected growth range estimated at the start of this year.

"The overarching principle of China is to seek progress through maintaining stability in the economy," he said.

Zhu also talked about the need to strike a balance among promoting economic growth, economic restructuring, and management of inflation expectation.

"As the largest developing country with a 1.3-billion population, China should manage its own things well, and run its own economy well. I think this is being responsible to the Chinese people, and this is also a major contribution to the world," he said.

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