Cannes - Europe has to "get its act together" and
quickly produce a financial rescue plan before other governments can decide how
to help, a government spokesperson said Thursday.
South Africa - along with China, Brazil and Russia - is
among major developing countries that have pledged support to Europe but say
they need to see details before determining how to help. Measures under
discussion include having non-European investors supply money for a possible
investment fund.
South Africa wants Europe to flesh out a plan during the
Group of 20 meeting of major developed and developing countries that runs until
Friday, said Mac Maharaj, a spokesperson for President Jacob Zuma.
"The first thing is for Europe to get its act together
so we have a clear picture of what Europe is proposing," Maharaj told the
Associated Press. "We are very interested in a solution and we believe the
solution is overdue."
The outline of a plan presented at the start of the G20
meeting in the Mediterranean resort city of Cannes looked promising, but that
is "in crisis" amid rapidly shifting developments in Greece, Maharaj
said.
The crisis has put Europe in the awkward position of looking
to developing economies such as China, South Africa and Russia to help finance
the rescue. They are much poorer than major European countries per person but
have ample cash from exports and sales of oil and minerals.
The investment fund under consideration would be created by
Europe's bailout fund to buy government bonds or recapitalise banks. European
leaders hope to raise money from non-European investors, especially sovereign
wealth funds of China, Russia or other governments.
The chief of the EU bailout, fund the European Financial
Stability Facility (EFSF), confirmed last week that China is among Asian
investors that have bought 40% of the €8bn ($11.02bn) in bonds sold by the
fund.
Asked in what form South Africa might contribute, Maharaj
said: "How are we to say we are going to back it by doing X, Y or Z when
we don't know how it will work?"Maharaj: Europe must rescue itself first
European nations need to get their own house in order before
other governments can make a decision on whether to come to their aid, says Mac
Maharaj.
A deputy Chinese finance minister said in Cannes on
Wednesday that Beijing wants to see details of the proposed investment fund and
how its money will be spent before it can decide whether to invest.
"There is no question of talking about an investment
now" in the EFSF, Zhu Guangyao told reporters.
Europe's debt crisis has battered developing countries by
eroding demand for their exports. Financial markets have been roiled by fears
it might plunge developed economies back into recession if not quickly
resolved.
"It is harming the developing world as well, and the
developing world did not play any part in causing this crisis," Maharaj
said. "Where are we on this matter?"