BRUSSELS, March 25, 2010 (AFP)
French President Nicolas Sarkozy and German Chancellor Angela Merkel struck a deal on Thursday to help Greece tackle a debt crisis that has dragged down the euro, Sarkozy’s office said.
The Franco-German deal was confirmed by a German government source.
Head-to-head talks between the pair have “proved productive,” said a French presidency source, who added that the agreement laid out “very precise conditions” under which eurozone countries “could be led to intervene.”
The text envisages “a European framework constituted of coordinated bilateral loans which member states would be drawn to contribute to,” the source said, with a complement of “International Monetary Fund loans.”
The terms were being put to European Union president Herman Van Rompuy immediately before the opening of a summit of the bloc’s 27 national leaders in Brussels, and were expected to include help from the International Monetary Fund.
The source said it would be up to Van Rompuy, “if he agrees with the text,” to decide when to circulate it among the other 14 eurozone leaders including Greece “for their consideration.”