October 10, 2011 12:03 PM

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Merkel & Sarkozy propose comprehensive packages to counter Euro Zone debt crisis

German Chancellor Angela Merkel and French President Nicolas Sarkozy have announced that they will present a comprehensive package of proposals to solve the euro zone sovereign debt crisis and support financially-troubled European banks by the end of this month. The two leaders said this after a meeting in Berlin that they are fully aware of their responsibilities for stability of the euro and they are determined to do everything necessary to increase the capital structure of the region's banks. Merkel told a joint news conference with Sarkozy that the two countries shared similar views on increasing the capital structure of banks and the two nations have reached an agreement on the question of re-capitalisation. In this regard, they said they want the same criteria to be applied to all financial institutions. Sarkozy said, Europe must solve its problems before the G-20 summit, which he will be hosting in the French resort of Cannes early next month. The two leaders also reaffirmed their support for heavily-indebted Greece to remain in the euro zone. There will be more meetings, including the European Council and a meeting of the euro group of finance ministers, before the end of this month to finalise the details of their proposal.

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