Sarkozy, Merkel in Emergency Meeting
August 12th, 2011Via: AFP:
French President Nicolas Sarkozy called a eurozone crisis meeting with his German counterpart while Italy promised cuts and tax hikes Thursday as its part in the battle to save the single currency.
Merkel will travel next Tuesday to Paris for the meeting aimed at producing “joint proposals” by September on how to better manage the euro and avoid future instability, Sarkozy’s office said.
The announcement came as financial markets were again in turmoil on concerns that the US and eurozone debt crisis may spark a new recession and after rumours of a France credit rating downgrade and fears over Greek debt exposure.
Markets are wondering whether France and Germany — the eurozone’s two biggest economies — can continue to underwrite other states’ debts without losing their top credit ratings and falling victim to the crisis themselves.
The crisis started in Greece and is now fuelled by fears that Spain or Italy might default on their debt and possibly spark a break-up of the currency shared by 17 countries.
DO NOT MISS: World Is Witnessing Financial WWIII
