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In the past, China has indirectly financed the European economy through European Investment Bank (EIB) bonds. (Photo: EIB)

Analysis

Chinese investment could energise the Juncker fund

During the onset of the European debt crisis in spring 2010, several euro economies dreamed of quick fixes, hoping to benefit from China’s large foreign exchange reserves, which then amounted to $3.2 trillion/€2.9 trillion (today $3.7 trillion/€3.3 trillion).

In turn, Brussels was promoting European debt to Chinese investors.

These hopes were inflated.

As the International Monetary Fund (IMF) estimated that half of the €6.5 trillion stock of government debt issued by euro ...

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Author Bio

Lisbeth founded EUobserver in 2000 and is responsible to the Board for effective strategic leadership, planning and performance. After graduating from the Danish School of Media and Journalism, she worked as a journalist, analyst, and editor for Danish media.

In the past, China has indirectly financed the European economy through European Investment Bank (EIB) bonds. (Photo: EIB)

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Author Bio

Lisbeth founded EUobserver in 2000 and is responsible to the Board for effective strategic leadership, planning and performance. After graduating from the Danish School of Media and Journalism, she worked as a journalist, analyst, and editor for Danish media.

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