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Euro Area financial difficulties

Published on October 21, 2011
Franco-German communiqué

Paris, October 21, 2011

President Sarkozy and the German Chancellor spoke on the telephone today to prepare for the forthcoming European meetings.

The President and the Chancellor signalled their full agreement to respond comprehensively and ambitiously to the crisis currently affecting the Euro Area.

This response will include the following elements:

- the operational implementation of new tools of intervention for the EFSF.

- a plan to recapitalize European banks.

- the establishment of an economic government of the Euro Area and strengthening of economic integration.

With a view to a lasting solution to the situation in Greece, the Greek authorities will have to make ambitious commitments to restore their economy in the framework of a new programme. On the basis of the troika [EU, European Central Bank and IMF] report and the analysis of Greece’s debt sustainability, France and Germany are calling for negotiations with the private sector to begin immediately in order to reach an agreement which will bolster that sustainability.

President Sarkozy and the Chancellor will meet on Saturday evening in Brussels prior to Sunday’s European Council and Euro Area summit.

France and Germany have agreed that all the elements of this comprehensive, ambitious response will be studied in depth at Sunday’s summit in order finally to be adopted by the heads of state and government at a second meeting no later than Wednesday./.

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