Who would have thought? Germany and France have finally decided to combine their efforts to support the euro. Nicolas Sarkozy and Angela Merkel have they understood it was time to coordinate their efforts to support a currency previously sealed by the distrust of markets? Since the famous rumor reports of market intervention by the European Central Bank on foreign exchange markets to support the euro, the single currency has a significant revival. After touching a low of less than a 22 dollar late Tuesday, the euro was close to the $ 1.25 to 19:50.A good time to announce this coordination.
Visit Brussels on May 21
"They agreed that Germany and France will work in close coordination with each other during the meeting which will begin May 21 in Brussels, said yesterday evening, the spokesman for Angela Merkel.
However, President of the Republic, during a joint press conference with British Prime Minister, David Cameron, argued that there was "no disagreement" with the German chancellor. Instead, "there is complete agreement" on the principle to consider new sanctions against the countries of the euro zone whose deficits are too large.
The rider from Germany irritates Lagarde
The two leaders have long debated on Thursday by telephone. No doubt they spoke of the many episodes that have seen the two countries criticize each other via the press.It all started last March, when Christine Lagarde called Berlin had to change its economic policy. Germany was obviously not appreciated that France has registered a record deficit could give lessons to an exemplary country in this field.
Two months later, around Angela Merkel to encourage European countries to follow its example in terms of budgetary discipline quick cash. A rider that markets have not appreciated at all, no more than those conducted by Berlin on Wednesday on short sales. Investors are seeing is a sign of lack of coordination between Germany and its European partners. Christine Lagarde, Minister of Economy, also regretted the unilateral decision.While stating that there was "no distance between Paris and Berlin," the minister argued that the euro was not in danger ", again taking the cons-foot German Chancellor.
"The real problem with the euro area, growth, not debt"
Guests from France 2, the Director General of the International Monetary Fund, Dominique Strauss-Kahn hammered, meanwhile, that "the euro is not likely to explode," recognizing that the risk would be that it "goes wrong" "The real problem with the euro area is not only the debts and deficits, but also and above all the growth.How is it that the International Monetary Fund expects 3% growth in the United States in 2010 and only 1% for the euro area? If the euro area showed a growth of 3%, we do not speak Greek crisis and even less deficit, "said IMF Managing Director.
Europe has always had a strong Franco-German axis
"To Europe, we must anchor Germany," said General de Gaulle. Europe has always had a strong Franco-German axis: De Gaulle and Adenauer, Giscard d'Estaing and Schmidt or Mitterrand and Kohl. Put under pressure by the Greek crisis, Merkel-Sarkozy axis must reaffirm its strength to ensure a better economic governance.
ALSO READ:
"Lagarde:" The euro is absolutely no danger "
"Rescuing the euro: Berlin reservation assistance
- Reding: a "diktat" of Paris and Berlin
- Crisis: an agreement on the euro is emerging
- Debt crisis: the hope of an agreement yet repelled
- Wall Street sharply higher
- The CAC is still on guard before the meeting between Sarkozy and Merkel