Joint Statement From Merkel And Sarkozy On Global Financial Crisis

Tyler Durden's picture

Below is the full text of the joint French-German statement attempting to prevent another European market collapse. Next up are comparable statements from the ECB and from theG7. We expect many more before the night is out.

Following is the full text of a joint statement issued on Sunday by German Chancellor Angela Merkel and French President Nicolas Sarkozy on measures to tackle the euro zone debt crisis.

President Sarkozy and Chancellor Merkel reiterate their commitment to fully implement the decisions taken by the heads of state and government of the euro area and the EU institutions on July 21st 2011.

In particular, they stress the importance that parliamentary approval will be obtained swiftly by the end of September in their two countries.

They welcome the recent measures announced by Italy and Spain with regard to faster fiscal consolidation and improved competitiveness. Especially the Italian authorities' goal to achieve a balanced budget a year earlier than previously envisaged is of fundamental importance. They stress that complete and speedy implementation of the announced measures is key to restore market confidence.

As decided on July 21st, the effectiveness of the EFSF will be improved and its flexibility increased linked to appropriate conditionality, in particular through the following instruments: precautionary program, finance recapitalization of financial institutions and to intervene in secondary markets on the basis of an ECB analysis recognizing the existence of exceptional financial market circumstances and risks to financial stability and on the basis of a decision by mutual agreement of the member states, in order to avoid contagion.

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holdbuysell's picture

Thanks...and my BB feed is unformatted as well.

I guess after that upgrade (and well-done, I might add) and the server explosion, things have yet to settle down.

Here's hoping the show is open so I can enjoy my popcorn in a few hours.

DoChenRollingBearing's picture

Oh yes, please keep the show running tonight!

holdbuysell's picture

Thanks...my BB feed is unformatted as well.

narapoiddyslexia's picture

Here's the problem - http://www.alexa.com/siteinfo/zerohedge.com

Look at TRAFFIC STATS and set the chart to max.

Traffic has been increasing, and strangely enough the graph LOOKS EXACTLY LIKE GOLD!

Check it out, dude.

DoChenRollingBearing's picture

Very interesting narapoid, thanks for sharing.

Jeremy Roenick's picture

Simple answer.  People will seek out the truth.

Amazing how consistent people are.  They may be slow to wake, but they finally come to their senses and seek the truth.

Threeggg's picture

This has been going on for a week. But hey, this is ZH, so you deal with it.

I am sure they will iron this stuff out.

"Time to change the Gerbils in the server"

papaswamp's picture

"In particular, they stress the importance that parliamentary approval will be obtained swiftly by the end of September in their two countries."

 

How the heck do they know that?

Quintus's picture

Because democracy in the EU died a long time ago.

falak pema's picture

the EU is not a nation state, but a cooperation of NS. Its institutions are more bureaucratic than democratic because the individual NS don't want to delegate democratic powers, their national prerogratives, to the supranational entity.  So democracy didn't die in EU, it was never BORN in EU collectively, at the behest of its members.

Instant Wealth's picture

They know the guy who counts the votes, I guess.

Yen Cross's picture

Sell your family for ( eur) and stock up on Preparation H !

youngman's picture

So everything is OK for another year...oops month..oops week...oops day I guess..cause they said so....back to watching the Asian gold market open..

Pectoralis's picture

lots of blah blah, as always.

max2205's picture

Blah blah....S E L L ! !

Nate H's picture

George Orwell you were prescient...

FoieGras's picture

Wow, they're basically saying nothing new. Not even hinting at throwing the kitchen sink at the market and defending Italy & Spain at all costs.

EURCHF should gap down huge.

Negro Primero's picture

by the way....where's Bunga-Bunga?

Marcuz Aurelius's picture

<--- Intervention !

<--- Game Over

Irrational Exuberance's picture

There is now a shortage of ink-toner now that all printing presses have been re-filled.  Swap lines of credit are now open between the Fed and ECB, and they are ready to print a quick 5 trillion!

carbonmutant's picture

Plausible deniability...

Threeggg's picture

It's the old format !

 

Gerbils are transitory....................................

Fazzie's picture

 By God it is indeed the old format! I guess the new one was hanging up the site and I thought they just needed a fresh Gerbil on the wheel!

saulysw's picture

I think you will find that if you go back to old threads you will also see all of the comments as "archived". Don't worry - I'm sure this is transitory, not tradition.

Fazzie's picture

There will be swift, decisive effective action, even though it hasnt happened yet, wont happen now, but is 110% certain by the end of Sept.

 Also Italy has promised to quit being insolvent just like Greece did. Heck they even promised to speed up the promise a whole year!

 We are the EU, we are 100% united and not full of shit. Maybe all those other times we claimed Euroland was fixed we were full of it but not now, honest Injun,  cross our hearts promise.

 Ok, If you dont beleive us stay tuned for our big bad G-7 brother. We told you free markets to shut up and buy crap Euro bonds but you insulted our integrity so that does it. You just wait for G-7s promises of instant solutions sometime in the future.

 Now you bond vigilantes had better get real scared and do the right thing and go all in on these sure thing PIIGS bonds or...or.....We will taunt you a second time!!!

 

              There, fixed it for them.

 

 

cosmictrainwreck's picture

"we will taunt you a sceond time" LMAO....recall the Frenchman taunting Arthur from the parapets... ha!

vast-dom's picture

I know how Europe can be saved! I know! I know!

 

Put Sarkozy and Merkel in touch with Graham Summers for that $350/oz gold deal. Germany and France could then flip all that dirt cheap gold to China, India and USofA and save Greece et al!!!!!!!!

 

All other conferences and policy actions are futile.

mikmid's picture

In other words they are going to bailout everyone they can until they can't and then print mo-money and do it again. It will be interesting to see how long this works. I give it 90 days. Anyone wan't to start a pool on which government is going to bankurpt first?

MAN THE LIFEBOATS, SAVE YOURSELVES!! (beans, bullets and bullion)

toady's picture

90 days = 90 minutes

LetThemEatCake's picture

This statement says nothing new. Sarkozy wants full ECB intervention and Merkel wants to wait and see. This says wait and see with perhaps easing in the future. Next, the crisis will intensify, and Merkel will get flak from everyone in Europe and the opposition and the majority of the German press that she has been too 'timid'. At that point she will (a) either concede and allow full ECB intervention (with massive instability/inflation to become apparent in the months to follow) or (b) do what's necessary and leave the Euro, with massive immediate problems,/turmoil in the markets but long term convergence towards stability. Since (b) is a rather remote chance IMO, I am not even thinking that the entire EU could come to its senses.

THE DORK OF CORK's picture

When you don't default on private debt thats non productive then fiscal debts MUST RISE - otherwise you get a breakdown in the payments system.

I got out of the Euro for the most part  2 years ago after it became obvious they would sacrifice the currency to pay the truely massive shadow bank deposits in the Eurozone.

If they want this experiment to continue they must provide the money to pay this odious debt.

Racer's picture

And all that hot air did exactly what?

hungarianboy's picture

Who cares? At least the Dutch PM had his party at Dance Valley :-)

http://www.youtube.com/watch?feature=player_embedded&v=Z4DiiVh-nVQ

The guy with the sunglass. Simply EPIC. No bodyguards, and bullshit, Truly as it should be.

I don't see Zapatero, Gpapa, Sarkozy, Obama, or Merkel doing this in public like Mark Rutte does :-)

Respect for the Dutch PM. Only in Holland with AAA rating :-)

 

Racer's picture

They are closely monitoring the situation.... just like a drunk  closely looking into his bottle to see how empty it is

Fazzie's picture

The EU are a bunch of Latte sipping, sausage eating wannabe printers who cant keep their collective pieholes shut (and in some cases their zippers closed) because they keep thinking a Euroland solution is just a clever statement away.

 

 There is only one printer on the planet who is up to this task, and he prints first and worries about a few bloody revolutions later and consequences be damned. He can lie his ass off with the best, but mostly he shuts up and does stuff off the radar and dosent feel the need to spout off BS every 12-24 hours.

 

 Ben "I have not yet begun to print" Bernanke!!!

Cast Iron Skillet's picture

OUR printers can out print YOUR printers anyday, and we're gonna damn well prove it!!!!

24KGOLD FOIL HAT's picture

A bland and generic statement...they must be too scared to say anything...A historic week, both behind and ahead!

raya123's picture

The ECB statement will be key with regard to bailing out Italy and Spain, not this statement by Merkel and Sarkozy.

Watson's picture

Not so remote to me. Merkel really does believe in all that unified Europe nonsense (combined with German angst for WW2). But at the end of the day she is a politician, and her party is getting hammered by her refusal to return to the DEM.

Caviar Emptor's picture

 precautionary program, finance recapitalization of financial institutions and to intervene in secondary markets on the basis of an ECB analysis recognizing the existence of exceptional financial market circumstances and risks to financial stability and on the basis of a decision by mutual agreement of the member states, in order to avoid contagion.

In other words abolish the free markets, once again. There won't be failure, but there also won't be success since new entrants, ideas and true competition are not permitted. They pick the winners and losers. The well-connected maintain their status, not the meritorious. 

And the world drifts further toward centralized government. Next you'll be told where to work and for how much. Finally, you'll be told how long you can live and if you need castration

css1971's picture

Mmm, I love the smell of fresh notes. None of your manky old used ones.

 

machineh's picture

'parliamentary approval will be obtained swiftly by the end of September'

HA HA HA!

'swiftly' = 7 weeks from now ... when markets' time horizon is 'tomorrow morning.'

More delusional word salad from incoherent eurowimps.

Conclusion: SELL TILL YOUR FRICKIN' HANDS BLEED. THESE DERANGED LOSERS ARE GOIN' DOWN.

Sudden Debt's picture

Now some of you guys seem positive about this but when a Frenchman and a German woman talk about what will happen without putting numbers in the conversation, THAT MEANS IT ARE HOLLOW WORDS!

10 Euro's or 10 TRILLION EURO's? WHO KNOWS?!

Lucius_Junius_Brutus's picture

I feel way more confident about my future now, thank you mister president.

Peter Pan's picture

Unless you are being sarcastic, I can assure you that you can be confident only of things becoming worse. Your President and his aunt Merkel have come up with only half baked responses instead of preemptive strategies. At the end of the day, they will be doomed because Greece, Italy and the others cannot shake themselves off the breast of government and cannot give up their tax evading habits.

Peter Pan's picture

The fact that that they stayed up all night and were only able to come up with this pitiful statement is a fair warning to all and sundry that the politicians are desperately trying to save their heads from the guillotine whilst sending the own citizens to the dogs.

mikmid's picture

The difference between a couterfitter and the central banks is that the central banks has olot of very big guns backing it up.