–Adds Media Reports On Details Of Plan To Story Sent At 04:46 GMT

BERLIN (MNI) – German Chancellor Angela Merkel and French President
Nicolas Sarkozy agreed on a joint position for a second fiscal aid
package for Greece, the German government confirmed Thursday.

The joint position has been communicated to European Council
president Herman Van Rompuy. No details on the proposal were released.
During their seven-hour negotiation, which started late Wednesday
afternoon, Merkel and Sarkozy had discussed the plan along with Van
Rompuy also with European Central Bank President Jean-Claude Trichet.
plan.

The German public television ARD on Thursday cited sources close to
the negotiations as saying that the German-French plan is not in
conflict with the interests of the ECB. Moreover, the plan includes
private sector involvement in the Greek aid measures, ARD said.

The French daily Le Parisien cited “diplomatic sources” saying the
talks focused on a larger aid package than the first one of E110
billion. There was also discussion of a bond rollover to reduce Greece’s
debt by E90 billion and EU and IMF loans of around E71 billion, the
newspaper said.

Le Parisien also mentioned talk of a bank assets tax to raise E50
billion. However, later media reports citing “EU sources” said there
would be no banking sector tax in the package.

The joint proposal will be discussed with fellow Eurozone leaders
at a summit in Brussels today, which is expected to agree on the
framework of the new fiscal aid program for Greece.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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