PARIS, Dec 5 (Reuters) – The leaders of France and
Germany agreed a master plan on Monday for imposing budget
discipline across the euro zone, saying the EU’s basic treaty
will need to be changed in the search for a sweeping solution to
its debt crisis.
President Nicolas Sarkozy and Chancellor Angela Merkel said
their proposal included automatic penalties for governments that
fail to keep their deficits under control, and an early launch
of a permanent bailout fund for euro states in distress.
PARIS (Reuters) – The leaders of France and Germany said on Monday they would push for EU treaty change by March to introduce closer fiscal union and sanctions for countries flouting deficit limits in a bid to shore up confidence in the euro zone.
President Nicolas Sarkozy said after talks with his German counterpart Angela Merkel in Paris that he hoped their plan would win backing from all 27 EU members at a summit this week but otherwise the 17 states of the euro zone would press ahead with a separate treaty.
BRUSSELS, Nov 29 (Reuters) – Germany made a pitch on
Tuesday to have its candidate take the job of chief economic
adviser at the European Central Bank, hoping to head off a
French contender who some economists see as more qualified for
German Finance Minister Wolfgang Schaeuble said his deputy,
Joerg Asmussen, was the ideal candidate to take charge of the
ECB’s economic portfolio when he joins the central bank early
next year, a job that could be central in shaping the bank’s
response to the euro zone’s sovereign debt crisis.
STRASBOURG, France (Reuters) – France and Germany agreed on Thursday to stop arguing in public over whether the European Central Bank should do more to rescue the euro zone from a deepening sovereign debt crisis.
President Nicolas Sarkozy and Chancellor Angela Merkel said after talks with Italian Prime Minister Mario Monti that they trusted the independent central bank and would not touch its inflation-fighting mandate when they propose changes of the European Union’s treaty to achieve closer fiscal union.
PARIS/BERLIN, Nov 24 (Reuters) – French President
Nicolas Sarkozy will press German Chancellor Angela Merkel on
Thursday to let the European Central Bank act decisively to
rescue the euro zone from a deepening sovereign debt crisis now
French officials hope Berlin will relent in its opposition
to a greater crisis-fighting role for the ECB after Germany
itself suffered a failed bond auction on Wednesday, highlighting
how investors are now shunning even Europe’s safest haven.
PARIS (Reuters) – The leaders of France and Germany will voice their support for new Italian Prime Minister Mario Monti at a tripartite meeting on Thursday, seeking to stem the risk of the debt crisis gripping the heart of the euro zone.
The talks hosted by French President Nicolas Sarkozy in the eastern city of Strasbourg are due to discuss the reforms planned by former EU commissioner Monti to restore confidence in the euro zone’s third largest economy, as well as the bloc’s overall strategy for dealing with the crisis.
PARIS (Reuters) – State guarantees for European banks’ medium-term debt, as under discussion, could help tackle a growing bank funding problem by allowing the European Central Bank to accept the bonds as collateral, the deputy head of the Bank of Italy said.
Fabrizio Saccomanni, director general of Italy’s central bank, also dismissed market talk that a yield of 7 percent on benchmark debt repayments represented a “point of no return” for the country’s finances, saying that in the past Rome had paid far higher rates.
PARIS, Nov 21 (Reuters) – Moody’s warned France on
Monday that a sustained rise in its debt yields coupled with
weakening economic growth could harm its ratings outlook,
fuelling concern the euro zone’s second largest economy might
lose its AAA status.
Worries about a high fiscal deficit and banks’ exposure to
other troubled European sovereign debt have drawn France into
the firing line of the bloc’s crisis, despite the government’s
insistence it would do everything necessary to protect its top
BRUSSELS/PARIS, Nov 17 (Reuters) – Euro zone and
International Monetary Fund officials have discussed the idea of
the European Central Bank lending to the IMF, to provide the
fund with sufficient resources for bailing out even the biggest
euro zone sovereigns, officials said.
“Some discussions on this have taken place… It could be
one way of getting around the legal restrictions on the ECB,”
one official with knowledge of the talks said. A second official
said ECB lending to the IMF was being explored.
PARIS (Reuters) – With its ‘AAA’ credit rating hanging by a thread and an economy lurching back to recession, France faces the choice of driving through reforms that have eluded governments for decades or risk the debt crisis dragging it down.
France, which came under fire again in markets on Wednesday, has a far more robust economy than the likes of Greece or Portugal but a deficit running at nearly 6 percent of GDP, and heavy banking exposure to the euro zone periphery means it will come under mounting pressure the longer the crisis drags on.