Merkel, Sarkozy Meet Amid New Year Of Euro Gloom


Salon Staff
January 9, 2012 1:54PM (UTC)

BERLIN (AP) — The leaders of Germany and France are holding their first meeting of the year as the eurozone's weaker countries worry about high borrowing costs and Europe works to hammer out a treaty enshrining tougher budget rules.

Monday's meeting of Chancellor Angela Merkel and President Nicolas Sarkozy comes ahead of new Italian Premier Mario Monti's first visit to Berlin Wednesday.

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Merkel and Sarkozy will travel to Italy Jan. 20 before a European summit at the end of the month.

Italy is a key focus of the crisis because of its size, huge debt load and need to borrow heavily in the first quarter. The yield on its 10-year bonds rose back above the 7 percent level that is considered a danger mark late last week.

Meanwhile, Greece's prime minister has warned of possible default if details of a second bailout aren't finalized.


Salon Staff

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