Tuesday, October 11, 2011

A plan to recapitalise European banks is agreed upon by France and Germany

A plan to recapitalise European banks is agreed upon by France and Germany 

The announcement came hours after the governments of France, Belgium and Luxembourg said they had approved a plan for the future of the embattled Franco-Belgian bank Dexia.

"We are determined to do whatever necessary to secure the recapitalisation of our banks," Merkel said at a joint news conference with Sarkozy at the chancellery in Berlin on Sunday evening. "A sound credit supply is the basis of sound economic development," she added.

Merkel added: "We are not going into details today," adding that the duo would present a "complete package" for stabilising the eurozone at the end of the month in time for the G20 summit in Cannes on 3-4 November. "This summit has to be a success for the sake of the global economy," she stressed.

Germany and France, which together represent about half of the 17-nation currency zone's economic output, regularly hold talks before EU summits to chart out joint positions.

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