France urged the swift implementation of the July 21 plan to rescue Greece, with Nicolas Sarkozy to discuss with Angela Merkel and Greek Prime Minister George Papandreou during a conference call.
“We must implement this plan in its integrity, with all its counterparts, and this will be the object of the discussions that the president, Chancellor Angela Merkel and the Greek prime minister will have today,” Valerie Pecresse, the government spokeswoman, said after a cabinet meeting. “The accord of July 21st, all of it, and as quickly as possible.”
France isn’t planning to issue any communication after the call, added Pecresse, who is also budget minister.
Pecresse also said issuing euro-zone bonds, described by many as the most radical solution to sovereign debt problems in the currency bloc, requires that all member countries first bring their public finances under control.
“Euro-zone bonds are for us the end of a process of consolidation in the euro zone because sharing debt also requires the convergence of our budget policies,” she said, adding that in the euro zone there is a growing consensus to cut deficits and pass budget rules that would force governments to rein in spending.
Pecresse also insisted that French banks are sound and that their ratings remain very good even after ratings agency Moody’s Investors Service Inc. downgraded two major French banks, Credit Agricole SA (ACA.FR) and Societe Generale SA (GLE.FR), earlier Wednesday and also extended its credit watch on BNP Paribas SA (BNP.FR),
The French government is determined to monitor the banks’ efforts to strengthen their equity capital and will guarantee the soundness of the country’s financial system, Pecresse added.
Paris, September 14, 2011 (Dow Jones)
