PARIS (MNI) – French president Nicolas Sarkozy’s office was in the
process of preparing a joint German-French statement on Greece before
the initiative was denied by officials for both countries, the French
daily Le Monde reported on its Web site.
“In fact, a communique was well underway in the press services of
the Elysee on Tuesday morning,” Le Monde reported, referring to the
Elysee Palace, the president’s residence. “Evidently, Berlin was not
ready to give the green light.”
According to the paper, the communique would have reaffirmed the
two governments’ support for their banks and reiterated the importance
of implementing the decisions taken by Eurozone leaders at their summit
on July 21.
A spokeswoman at the Elysee Palace declined to comment on the
report, other than to note that Sarkozy would meet with Herman Van
Rompuy, president of the European Council, on Tuesday afternoon and that
a statement could be issued following the meeting.
A German government source said, meanwhile, that Sarkozy, German
Chancellor Angela Merkel and the Greek Prime Minister George Papandreou
will hold a conference call on Wednesday. It was not clear whether a
statement would be issued then.
Financial markets rallied briefly this afternoon following reports
that France and Germany would announce a new initiative, but quickly
fell back when the reports were denied.
“There was clear disappointment when this was denied,” said one
London-based currency strategist who asked not to be identified. “The
markets really want to see some kind of solution and this is making
politicians scramble all over Europe.”
–Paris newsroom, +331-42-71-55-40; paris@marketnews.com
[TOPICS: M$Y$$$,M$G$$$,M$F$$$,MGX$$$,M$$CR$,M$X$$$]
