Chinese PM warns Europe on finances

Press Association
Wen Jiabao
Wen Jiabao

Chinese premier Wen Jiabao has called on Greece, Spain and Italy to embrace budget cuts and get their finances in order after meeting visiting German chancellor Angela Merkel.

Mrs Merkel was in Beijing for talks aimed at boosting trade and allaying Chinese fears about Europe's heavy government debts. China has a stake in a resolution because Europe is its biggest export market and Beijing holds billions of dollars in European bonds.