BRUSSELS, Sept 20: Chinese Premier Wen Jiabao on Thursday praised Europe for being “on the right track” in tackling the euro crisis and pledged continued assistance to help overcome sovereign debt fallout.

Speaking at a business “summit” alongside the Brussels leadership, Wen said China in past months had continued investing in European government bonds and discussed cooperation with the eurozone’s new rescue fund, the 500-billlion-euro European Stability Mechanism (ESM). As the new firewall prepares to become operational next month, Wen said:

“China will continue to play its part in helping resolve the European debt issue through appropriate channels.” “Europe is on the right track in tackling its debt issue,” he told the couple of hundred business leaders attending. “What is crucial now is to fully implement the reforms” on economic governance.

After starting a one-day EU-China summit on a sour note by demanding an end to a more than 20-year arms embargo and the lifting of all tariffs on Chinese goods, Wen hailed China-EU ties as “one of the most important partnerships in the world.” “I hold the development of this relationship close to my heart,” he said after signing a 49-point four-page agreement with the EU ranging from foreign policy issues to mutual agreements to increase research and development, and create tens of thousands of student scholarships. China and the 27-state bloc, already the world’s second biggest economic market with a billion euros in two-way trade per day, needed to “focus on deepening our dialogue,” said EU president Herman Van Rompuy.—AFP