FRANKFURT (MNI) – Germany’s Chancellor Angela Merkel said Eurozone
heads of state and government will look at how to address the issue of
Greek competitiveness, which would involve going to the “root of the

As she entered the EMU leaders’ summit in Brussels, Merkel said she
was confident they would reach an agreement on how best to deal with
issues of competitiveness and growth in the region.

Merkel noted that she had held discussions on Wednesday with French
President Sarkozy, European Council President Herman Van Rompuy and ECB
President Jean-Claude Trichet, in which they looked at various options.
She refused to elaborate on any details of the discussions.

According to media reports citing unidentified sources, France
appears to have dropped its demands for a pan-European banking tax with
some kind of plan that could involve a selective default now taking
greater on significance.

— Frankfurt bureau: +49 69 720 142;

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