FRANCE: Markets and consumers on edge despite wide-reaching plans for closer euro zone integration announced by German Chancellor Merkel and President Nicolas Sarkozy

Record ID: 783698

  • Title: FRANCE: Markets and consumers on edge despite wide-reaching plans for closer euro zone integration announced by German Chancellor Merkel and President Nicolas Sarkozy
  • Date: 18th August 2011
  • Summary: VARIOUS OF NEWSPAPER FRONT PAGES NEWSPAPER HEADLINES ON THE FRANCO-GERMAN PLAN
  • Embargoed: 2nd September 2011 13:00
  • Keywords:
  • Location: France, France
  • Country: France
  • Topics: International Relations,Finance,Politics
  • Reuters ID: LVA7IT9RAIC0TB1VJIZ1LISFZQ23
  • Story Text: World stocks and the euro slipped on Wednesday (August 17) as investors grew concerned that French and German plans for closer fiscal integration may be insufficient to stop the regional debt crisis from spreading further.
    Shares in European banks and leading financial services firms fell sharply despite the extraordinary meeting, as markets remained concerned about the health of the euro zone.
    "Well this morning the financial markets opened on a slight low. They seem a little disappointed by the measures announced yesterday by the Franco-German duo Angela Merkel and Nicolas Sarkozy. They were maybe waiting for more radical measures. In any case, the Franco-German duo appeared very optimistic on the perspectives of the euro zone. They reiterated their will to defend the eurozone and the euro and made some interesting propositions to build a first framework and foundations for a more harmonised European governance," said Montsegur Finance trader Marine Michel.
    During the Franco-German meeting, the French President and the German Chancellor rekindled plans for a financial transaction tax.
    But after a fortnight of market and euro zone insecurity, even consumers said the road back to a healthy economy would be long and arduous.
    "We have to get out of this exceptional phase with meetings between Merkel and Sarkozy every ten days, so that we can move into a more confident climate, which would let us work in the long term, because we won't get rid of a country's debts quickly. And the more debts we have, the more the consumers are reluctant to have any confidence in the future, and the more the economy is depressed. So right now everyone is conscious of this main problem which needs addressing, and this will take time. But we need to be in a climate of confidence for the politicians to be able to do their work and to maybe eventually find some solutions," said Parisian Thierry Leclerc.
    "For the moment, I'm a little sceptical. I do not think we are out of the worst of it unfortunately. I think there will be other crises before all our politicians can agree. We would already need to be deep in the abyss I think," said another, Philippe Cornevin. "For the moment, I think they are just declared intentions, in my opinion. We need to keep an eye out. I don't think we're at the end of it,"
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