European Union finance chiefs said Sunday they saw no risk in Europe of a default similar to Dubai's shock request last week for a debt payment moratorium of at least six months. The emirate's government said Wednesday it would ask creditors of its Dubai World conglomerate, which has reported debts of 59 billion dollars, for a temporary reprieve from its debt payments. “I don't see any default problem in Europe,” Eurogroup chief Jean-Claude Juncker, who is also prime minister of Luxembourg, said in the eastern city of Nanjing after a reporter asked if there was a similar risk on the continent. European Central Bank head Jean-Claude Trichet and EU economic and monetary affairs commissioner Joaquin Almunia were quick to support his view. “I also entirely confirm what the prime minister said,” Trichet said. “Indeed, I also confirm,” Almunia added. Dubai rattled world financial markets on Wednesday when it made the announcement. The European finance chiefs spoke to reporters after meeting with Chinese Premier Wen Jiabao and Beijing's top economic planners, one day ahead of a China-EU summit expected to focus on climate change. Juncker moreover said China should let its currency strengthen against the euro and other major currencies, for its own sake as well as that of the global economy. “We think an orderly and gradual appreciation of the renminbi would be in the best interests of China and of the global economy,” said Luxembourg Prime Minister Jean Claude Juncker, who heads economic talks among the 16 countries that use the euro. The meetings come amid worries the rising euro could derail the recovery of a region competing with exports from China, whose currency is linked to the weakened US dollar. Faster change would give China more leverage over its own economic policy.
