Merkel and Sarkozy aim to restore confidence

| August 17, 2011 | 0 Comments

French President Nicolas Sarkozy and German Chancellor Angela Merkel have pledged to put an end to the debt crisis and restore confidence in the euro.

The two leaders of the euro zone’s largest economies last night called for “true economic governance” for the region and wants bi-annual meetings of the 17 leaders of the euro zone Governments.

Mr Sarkozy said: “This economic government will be made up of heads of state and government that will meet twice a year, and more if necessary – it will elect a stable president for two-and-a-half years.”

He added that Herman Van Rompuy, the current President of the European Commission, will be the first leader.

The two nations want to shore up the common currency and regain the trust of the markets by adopting a “stronger interplay of financial and economic policy.”

However, markets did not respond well to the announcements and after the press conference, the Dow Jones Industrial Average fell 1.3% but rebounded later.

The euro also fell as the announcement failed to ease fears of the debt crisis spreading to Italy and Spain.

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