Europe's sovereign debt crisis could spread and deepen, China said on Tuesday, and the European Central Bank again rejected any private investor involvement in a Greek rescue that was not strictly voluntary.
The Eurogroup of euro zone finance ministers will meet in Brussels later to plot a way forward with those warnings ringing in their ears and Greek bond yields hitting a euro-era high.
Sources say it is too early for a deal to be struck.
"There are no decisions expected today, it is just about looking for common ground," said one source involved in the meeting's preparation.
China's central bank used its annual financial stability report to sound one of its starkest warnings yet about Europe's debt mire, saying a series of rescue measures had helped stabilise the situation but not tackled the root causes.
Reuters
