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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Peter Pan's picture

Very true, but all counterfeiters are punished in the long run and all their clients are destroyed.

Little John's picture

Mao Tse Tung said all political  power flows from machine gun  

Peter Pan's picture

You're so right. Even the Egyptian president had machine guns.

Yen Cross's picture

  I try to dis-agree with you 777!  I just can't find a reason?   +`~

falak pema's picture

The ONLY urgent question is : WILL THE ECB HAVE POWERS TO BUY ITALIAN BONDS AS OF MONDAY....AS REQUIRED BY THE MARKET. 

This will talk stronger than statements.

Peter Pan's picture

Of course. The EU and the ECB have already done things in the past that were not strictly by the book. Even if they don't act immediately, they could try and pump money from different (secret) sources into the stock market and hammer gold so as to give the appearance of confidence.

falak pema's picture

According to Le monde Journal on line : ECB has an unwritten brief from both Merkel and Sarkozy to strongly support Italian and Spanish bonds come Monday. But as the ECB is independent of national governments it is the role of the german Bundesbank which will determine come Monday the extent to which the ECB management will support this buy strategy, depending on market response. Its now the Bundesbank which is the German watchdog in this central bank play. achtung!!

jmcadg's picture

So why has the EUR jumped 110 on $. 

Shouldn't the EUR be dying on it's arse?

Peter Pan's picture

The US, Japanese and Chinese termites are holding hands behind the scenes like termites do on a terminal structure in the hope that they will stop the whole thing from falling. In other words, they are massaging the currency markets to allay your fears.

sulfur's picture

please keep paying your taxes and buy our bonds nothing to see here

George the baby crusher's picture

Spin doctors and not very good ones at that.

Gunther's picture

deleted , comment belongs elsewhere

f16hoser's picture

Well if Merkel And Sarkozy say everything is fine then everything is fine. RIGHT? Anyone? Anyone?????? Merkel sold out her countrymen and obviously Sarkozy's honeymoon is over.........

Yen Cross's picture

[Kermit and Beaker] borrowing from Big Bernanke!   Gumby ( Timmah) & Pokey ( p.o.t.u.s) in the Grandstands!!!!   YEAAA!

Piranha's picture

This is "IT"?....it will be bad tomorrow

theprofromdover's picture

Just like Congress last week, they didn't have any understanding as to what was required of them.

They thought that a few platitudes and presumably a photo-opportunity would do the trick.

Those days are long gone.

Pygmies all.

Donlast's picture

What bugs governments is that their debt TMA which they used to buy votes and sell heavenly policies has a notice on it:  "Out of Order".   Shut down until further notice.  

Let the politicians spin in the wind. They are out of their depth. No idea what it takes to really create wealth, no idea at all and academic economists with them. Useless. How many have ever created a business, run a company, invented or engineered anything. Zilch. Law always law.  Many of them are as thick as two planks as far as wealth creation is concerned. 

Winston Smith 2009's picture

ECB to buy Italian, Spanish bonds to stop contagion
Sun Aug 7, 2011 4:48pm EDT

http://ca.reuters.com/article/businessNews/idCATRE7762PE20110807?sp=true

Yen Cross's picture

  Thank GOD I have a sense of humor, and Manage my margins!

chump666's picture

an ECB print job via German backstops, this is like...attempt No 6? sarkozy is quite possibly the most ridicules EU leader, mekel is a close second.  Germans now will be underwriting a huge risk engine re: ECB that will have the balance sheet from hell.  wont stop EUR selling, so the europeans will get a nice dose of inflation sent their way ...gift from these old Europe a-holes

chump666's picture

Just kick out greece and maybe portugal...it will force the other piigs to get their shit together. European leaders need to show strength, leadership for f?cks sake.

Racer's picture

Years later after all the green shoot hopium we get this headline:


Joint Statement From Merkel And Sarkozy On Global Financial Crisis

Idiots were at the helm and are still there

Mongrel's picture

I bet there's rich folks eatin' in some fancy dinin' car,

They're probably droppin' acid and eatin' big cigars . . .

chinawholesaler's picture

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jaffa's picture

Whatever the politicians may pretend, governments, banks and companies continue to make contingency plans for a Greek exit from the euro. And, arguably, the terms of the latest bailout make one easier. Thanks a lot.
Regards,
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jaffa's picture

Finance is conceptualized, structured, and regulated by a complex system of power relations within political economies across state and global markets. Finance is both art and science, although these activities increasingly converge through the intense technical and institutional focus on measuring and hedging risk return relationships that underlie shareholder value. Thanks.
Regards,
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