Flaherty wants Europe to solve its own debt crisis

Finance Minister Jim Flaherty says Europe should use its own resources to resolve its debt crisis before other countries contribute.

His comment during a visit to Beijing adds to the pressure on 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 first see a detailed plan.

Flaherty said they want to see Europe build a "very strong firewall" to protect their banks and prevent debt contagion from spreading.

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

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

"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," said Flaherty.

View the original article here