Sarkozy may approach China for EU fund

French President Nicolas Sarkozy may call Hu Jintao tomorrow to ask China to invest in a potential fund to help resolve sovereign debts in the EU, Bloomberg reported, citing a person familiar with the matter. The fund was one option to extend the reach of the US$612 billion European Financial Stability Facility being considered by European leaders at a meeting in Brussels on Thursday. Klaus Regling, CEO of the EFSF, will visit Beijing this weekend to engage in “a normal round of discussion,” according to an EFSF spokesperson. Unidentified government officials familiar with the situation have said China may be willing to help the EU fund a package to solve the region’s debt crisis. However, Reuters published a conflicting report the previous day, saying that China is likely to steer clear of Europe’s bailout fund and investment vehicles but would probably be willing to invest in specific countries and assets within Europe at a sovereign level.