BERLIN (MNI) – The German government warned on Monday that the
European debt crisis has entered an “extremely difficult phase” and that
a spillover to the real economy must be avoided.
German Chancellor Angela Merkel and French President Nicolas
Sarkozy said Sunday that they will present joint proposals for a
recapitalisation of banks in the Eurozone before the end of the month.
This package will also include a closer financial and economic policy
cooperation across the Eurozone, Merkel said.
German government spokesman Steffen Seibert said today that
“Germany and France know their responsibilities in this extremely
difficult phase of the European debt crisis, especially their
responsibilities to prevent a carrying over [of the financial crisis] to
the real economy or at least mitigate” its fallout.
Experts from both governments have started their work on the
package of measures today, Seibert said.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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