What have Merkel and Sarkozy really delivered?
What would you call Merkozy’s latest?
Reading about 20 stories on the comments from Merkel and Sarkozy. It has been described as a pledge, a vow, an agreement. Other say they have reached a deal, reached a pact or hatched a plan.
What they really said: they will deliver a plan to recapitalize European banks and address the Greek debt crisis by the Nov. 3 Group of 20 summit.
“When it comes to recapitalizing the banks, our agreement with Germany is total.” The French president, however, said details would be decided at a future meeting.
They “are determined to do the necessary to ensure the recapitalization of Europe’s banks.”
At best this is a pledge to deliver a plan (Bloomberg) or something where they say deal is near (WSJ)
WSJ: The leaders of Germany and France said they will present a “comprehensive package” of measures against the crisis in euro-zone banking and government bonds by the end of this month but they gave few details, suggesting that Europe’s two top economies continue to spar over the plan’s specifics.
I love the quote from this strategist “The market gave Merkel and Sarkozy the benefit of the doubt. They know they have to come up with specifics.”
Now that`s a trade I want to take the other side of.