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Merkel and Sarkozy agree to act quickly on Greece rescue

AFP · 1 May 2010, 14:06

Published: 01 May 2010 12:58 GMT+02:00
Updated: 01 May 2010 14:06 GMT+02:00

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"The president and the chancellor fully share the same view and reaffirmed their determination to act quickly to implement the support plan as soon as a three-year programme will have been concluded with the Greek authorities," said an Elysee statement.

Sarkozy spoke by phone with Merkel ahead of a meeting of his economic team at the Elysee palace to discuss the aid package being cobbled together by eurozone countries and the IMF to save Greece's economy.

French Finance Minister Christine Lagarde confirmed that the three-year bailout plan will total between €100 and 120 billion ($133-160 billion).

Finance ministers of the 16-nation eurozone are to meet Sunday to discuss the terms for the bailout expected to reach €45 billion this year alone, of which €30 billion will come from European countries.

The German and French parliaments are set to vote on loan packages next week, setting the wheels in motion for EU leaders to give the final go-ahead for the massive rescue at their summit on May 10.

In addition, France and Germany will "over the coming days take measures" to step up monitoring of eurozone financial markets and look at tighter regulation of rating agencies, said the Elysee statement.

Greece's efforts to climb out of debt suffered a blow this week when Standard and Poors slashed Athens' credit rating to junk status and also downgraded the ratings for Portugal and Spain.

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The French National Assembly is expected to vote in the coming days on extending loans of up to €6.3 billion - of which €3.9 billion would be unlocked this year - to help Greece meet its debt refinancing obligations.

The two German federal houses of parliament could decide by Friday whether to allow Berlin to loan some €8.4 billion to Greece, according to leaders of Merkel's party.

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Your comments about this article

14:44 May 1, 2010 by cocovelvet
Well, hopefully the future looks rosa red for the Greeks..........

..........at least they can keep their fingers crossed that indeed something positive would come out of this Merkel/Sarkozy discussion over a possible rescue plan.
15:35 May 1, 2010 by fair1day
During my whole life Greece has been in trouble.

My guess this is more of "putting a bandaid" on the problem of their (Greek) stupidity.
16:59 May 1, 2010 by emdela
Why would any institution willfully lend to someone when it knows they might not be getting paid back?

because their loans are secured by government.

if greece defaults, the banks will get it back from governments.

the governments in turn will get it from their people.

in the end the people end up paying the capital and the high interests.

I think the banks are at it again.

they are taking the world for a greed ride.
20:22 May 1, 2010 by Prufrock2010
Goldman Sachs will make out very nicely on this deal. They're shorting the euro as I write this.
00:41 May 2, 2010 by wmm208
GS starting shorting the Euro like everyone else in December. Euro is going down much further. Deflation has arrived. You will be paying big to bailout Europe. Banks are also screwed. Euros will be used like toilet paper soon. ha ha ha ha
23:26 May 3, 2010 by baltog
fair1day.. How old are you? May be 19yo because you dont remember the european money spended for "saving" DDR (17ML population-30% of mean EU PIB) !! For sure you dont remember how german "stupidity" lost the WW2 = pushing the south european countries to the extreme famine- and "creating" the biggest partisan moovment in the human History!! Anyway stupidity is historicaly related with your country and NOT with the mediterranian countries!
00:30 May 4, 2010 by wmm208
Just wait until the rest of the PIIGS stick their snouts in the trough. I hope the German taxpayers have some anal lube on hand. About 1 trillion is needed over the next few years. You will only "Wish" that this was just a Greek problem...

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