China's Wen says financial crisis more serious than expected

18th May 2010, Comments 0 comments

Chinese Prime Minister Wen Jiabao said Tuesday the global financial crisis was more serious and complex than expected and urged greater cooperation to push forward economic recovery.

"The world economy is slowly recovering, but the basis for recovery is still weak and the progress uneven," China Central Television quoted Wen saying in talks with visiting German President Horst Koehler.

"The European sovereign debt crisis has stalled the European recovery. The seriousness and complexity of the effects of the international financial crisis have surpassed peoples' expectations."

The world's biggest economies should work together to explore the establishment of an effective international "mechanism" to advance the global economic recovery, Wen said.

Wen and Koehler both agreed to step up consultations on the recovery, while also advancing bilateral trade and economic ties, the report said.

In talks with Koehler on Monday, President Hu Jintao said China fully supported the huge 110-billion-euro rescue package put forward by the European Union and the International Monetary Fund to help Greece overcome its debt crisis.

Koehler, on a five-day visit to China, was also expected to hold talks with central bank governor Zhou Xiaochuan and Vice Premier Wang Qishan, the German embassy said.

The German president, who is a former head of the International Monetary Fund, could raise the issue of the value of China's currency.

© 2010 AFP

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