Hollande Defies German Crisis Handling on Euro Bonds, Banks
By Helene Fouquet and James G. Neuger - May 23, 2012 11:24 AM ET
French President Francois Hollande challenged Germany’s handling of the financial crisis as he headed to his first European Union summit with calls for joint borrowing and cash injections to struggling banks.
Hollande teamed with Spanish Prime Minister Mariano Rajoy to press for tonight’s meeting of EU leaders to break with German-dominated budget-cutting policies that have failed to stabilize the 17-nation euro area and led to speculation that Greece might be forced out
France will “put all the ideas for growth and liquidity on the table,” Hollande told reporters in Paris before heading to Brussels. “Europeans have to know where Europe is heading. There has to be political direction. Milestones have to be established and goals set.”
The summit, the 18th since Greece was convulsed by debt, takes place with market indicators showing mounting stress on banks, notably in Spain. The euro tumbled to a 22-month low against the dollar amid concern that divisions between France and Germany will frustrate the search for answers.
On his ninth day in office, Hollande shifted the crisis- fighting optics by holding a pre-summit briefing with the leader of recession-wracked Spain, instead of coordinating with Germany’s Angela Merkel, head of Europe’s dominant economy.
Leaders of all 27 European Union countries meet at 7 p.m. The crisis in the euro area will come up only “at the very end,” EU President Herman Van Rompuy said in a pre-summit letter. The next summit of all 27 is slated for June 28-29.
Pressure on Merkel
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http://www.bloomberg.com/news/2012-05-23/hollande-challenges-german-crisis-handling-on-euro-bonds-banks.html
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