The Search for Solution of Greek Woes Continue, EU Offers Plan
German and French Leaders have forgotten their turmoil for each other as they try to handle the Crisis situation in Greece. Both Chancellor Angela Merkel and President Nicolas Sarkozy called an emergency meeting for an agreement amongst EU Members to create a package that would salvage the Greek crisis.
All markets could not make sure of the fact that Greece would find itself hard to recover from their debts. The entire European continent will make sure that one of their slumping countries could recover by seeking help from private investors.
Greece for the meantime has made changes with its cabinet members so as to get allies for its austerity program worth $ 38 billion.
The meeting between the two leaders in Berlin transpired talks about the crisis due to the reshuffling of the Greek cabinet, due to the resulted political instability. Chancellor Merkel desperately wanted a European pact with the French leader Sarkozy to push through for Greece’s rescue package by next week during the EU leader’s summit. “We have to find a solution as soon as possible. We have spent the whole of May and June discussing the same problem without reaching agreement”, Merkel said in a press conference with Sarkozy.
She also stated in the same interview in Berlin that they will collaborate with European Capital Bank in an effort to evade unwanted markets. Also, both Germany and France have offered their assistance to George Papandreou and the rest of the Greek government.
The 10-year bond of Greece dropped for two weeks in a row now, making a yield difference or spread among securities and German bunds at its highest values. Meanwhile, two-year note yields for Germany dropped three basis points during the entire week up to 1.51 percent. During the 16th, it reached 1.43 percent, it was that low not since February 22; as investors looked for protected assets in the Euro area.
Prior to the joint venture between France and Germany yesterday, there have been numerous disputes plaguing the two big European nations. Chancellor Merkel was forced to purchase back few loans to pave the way for Greece to settle their debts. Yet the French Banking Industry might be undercut if Germany does so. But on Thursday, the two nations have set these entire problems aside and focused on solving the bigger puzzle.
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