Merkel-Sarkozy Reached a Bailout Deal for Greece (video) tagged: , , , , , , , , , ,

Merkel-Sarkozy Reached a Bailout Deal for Greece (video)

Posted by keeptalkinggreece in Economy

A compromise on Greece additional bailout was reached between German Chancellor Angela Merkel and French President Nikolas Sarkozy on Friday morning in Berlin. The two leaders agreed on the participation of private investors on ‘purely voluntary’ basis in order to avoid a so-called ‘credit event’.

During a common press conference both Angela merkel and Nickolas Sarkozy streed that Greece must assume its responsibilities.

Merkel  stressed that Europe must support the work of the Greek Prime Minister. “We will do everything to protect the stability of the euro”, she added.

Regarding the proposed participation of private creditors in resolving the Greek crisis, Merkel noted that it would come into conflict with the ECB and she  pointed out she advocates of voluntary participation of  private intestors.

On his part, Nicolas Sarkozy said that France and Germany are in agreement about  Greece and that “they are fully committed to defend the euro.”

He reiterated that a new program is needed for Greece and stressed that the Greek government will have  to continue the implementation of reforms.

France and Germany want a quick solution for Greece., said Sarkozy and stressed that the new program for Greece should also have the support from the European Central Bank and that “private sector participation should be designed in cooperation with the European Central Bank.”

Eurogroup-president Jean-Claude Juncker warned  that “waiting until September for a solution to Greek crisis is not a good idea”.

(source: economic portal Capital.gr)

 The German-French agreement drove Athens Stock Exchange high and Greek spread low. At 3.05 pm, local time, the General Index was at +4.59% with the banks recording +7.9%.

The spreads of the ten years Greek bonds are at 1.444 bp.

Video: Merkel/Sarkozy statements (German/French/Greek subtitles)