France, Germany Show Solidarity on Greek Economy

June 17, 2011

French President Nicolas Sarkozy and German Chancellor Angela Merkel brief the media at a news conference after their meeting at the chancellery in Berlin, June 17, 2011

The leaders of France and Germany signaled Friday they want to find a quick solution to the economic crisis in Greece. In Greece, the prime minister reshuffled his Cabinet and replaced his finance minister

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Speaking in Berlin, German Chancellor Angela Merkel and French President Nicolas Sarkozy said the stability of Europe's single currency, the euro, is their top priority.

Greece, a nation in the eurozone and part of the single currency, is in major debt. It needs a multi-billion-dollar loan from its euro neighbors in order to avoid defaulting on that debt.

France and Germany had been at odds over whether private holders of Greek bonds should be involved in a Greek rescue package.

But on Friday, Merkel said the two countries were on the same page. She said that private investors should participate only on a voluntary basis. She added that mandatory participation does not have a legal basis.

Analysts say this is a softening of Germany's position, which they say had been leaning towards forcing losses on private creditors.

President Sarkozy said Friday that France and Germany are committed to defending the euro. He added that their program has to be put in place quickly.