The leaders of Germany and France have promised to unveil new measures to solve the euro zone’s debt crisis by the end of the month, as international pressure builds for bold steps from Europe to avert an economic backlash of global proportions.
German Chancellor Angela Merkel and French President Nicolas Sarkozy said after talks in Berlin on Sunday evening that their goal was to come up with a sustainable answer for Greece’s woes, agree how to recapitalise European banks and present a plan for accelerating economic coordination in the euro zone by a G20 summit in Cannes on Nov 3-4.
Meanwhile, Belgium, France and Luxembourg decided on Monday to dismantle Dexia, the first bank to fall in Europe’s debt crisis, as the euro zone prepared a battle-plan to protect its banking system.
Belgium agreed after board and cabinet meetings to pay €4.0 billion ($5.36 billion) to nationalise Dexia’s domestic consumer-lending unit. Reuters/AFP