EU's Schulz calls on new leaders to help stabilize euro

Perspective

European Parliament President Martin Schulz has high hopes that China's new leadership will renew its commitment to a stable euro and strengthening Sino-EU economic interdependence.

"China, under new leadership, should take enormous responsibility for the stabilization of global currencies such as the euro," Schulz said, urging China, with the highest amount of foreign reserves in the world, to help stabilize the European currency.

Schulz raised expectations during an exclusive interview with China Daily on Wednesday in the headquarters of the Social Democratic Party of Germany in Berlin.

Still a crucial member of Germany's oldest political party, Schulz is very active in politics in his home country, and he often spends Monday in Berlin meeting his party peers.

"On one hand, stabilization of our currency, the euro, is very important for us," said Schulz, who assumed his current post at the beginning of this year. "And on the other hand, it is necessary for China to diversify its portfolio of foreign reserves."

So he concluded that China and the EU have the highest shared responsibility in the stabilization of global currencies.

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To achieve stabilization, Schulz suggested: "We stabilize our currency, and China invests in the most responsible and sustainable way worldwide." Schulz offered his ideas against the backdrop of the European Union creating a permanent financial firewall, the European Stability Mechanism, in October, with a maximum lending capacity of 500 billion euros ($641.8 billion).

Though it has no immediate plans to issue bonds, China is targeted as a major buyer in the coming months.

Even before the establishment of the ESM, China had already invested in the International Monetary Fund and individual countries' debt bonds to help the European Union get out of its debt crisis and economic recession as soon as possible.

Schulz is also very supportive of boosting exchanges between the CPC and eight political groups under the European Parliament. From these dialogues and encounters, Schulz said he knows the importance of the role of the CPC and the capacity of Chinese leaders.

Schulz said he has met China's younger generation of politicians who are leading candidates for China's new leadership.

And he said he has been impressed by their understanding and knowledge of Europe, the European political system and European challenges.

"At home, I hope the new leadership will take into account the high responsibility of the CPC in achieving democratic progress, economic development, monetary governance and ecological conservation," Schulz said.

"As Europeans, we are insisting that China should take a most serious attitude to achieving these."

Liu Jia in Brussels contributed to this story.

fujing@chinadaily.com.cn

(China Daily 11/08/2012 page5)