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Germany and France to the Rescue, Again

Posted on Jan 9, 2012

France’s Nicolas Sarkozy and Germany’s Angela Merkel at a news conference Monday in Berlin.

Now that the holiday season is over, French President Nicolas Sarkozy and German Chancellor Angela Merkel are back in crisis management mode, huddling in Berlin on Monday before emerging to hold a joint news conference on the future of the eurozone. High on their list of action items, of course, was what to do about their flailing neighbors, Greece in particular.  —KA


Germany and France warned Greece on Monday it will get no more bailout funds until it agrees with creditor banks on a bond swap and pressed for an early deal to avert a potential default in the euro zone’s most debt-stricken nation.

Chancellor Angela Merkel and President Nicolas Sarkozy, the euro zone’s two leading powers, insisted after talks in Berlin that private sector bondholders must share in reducing Greece’s debt burden, along with new European and IMF lending.

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