Canada says Europe should use own resources

AP News
Posted: Nov 14, 2011 3:01 AM
Canada says Europe should use own resources

Europe should use its own resources to resolve its debt crisis before other countries contribute, Canada's finance minister said Monday.

Jim Flaherty's comments added to pressure from other governments for European leaders to produce a financial rescue plan and resources to support it. China, South Africa and others have said they might consider contributing but need to see a detailed plan.

Flaherty said he discussed the issue with Chinese officials in Beijing and at a meeting of Asia-Pacific finance ministers this month, though he declined to say what the officials said about China's current position.

The minister said governments want to see Europe build a "very strong firewall" to protect the continent's banks and prevent contagion from spreading beyond seriously indebted governments.

"Generally, I think the view is that we first need to see that very substantial commitment and action by the Europeans _ and I'm talking about the members of the euro zone _ before any more would be asked of non-European G-20 countries," Flaherty told reporters.

Chinese officials have said Beijing might consider putting money into a fund meant to help stabilize Europe by buying government bonds with money from outside investors but wants to see details before it can decide.