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| Edited By: |Source: Agencies |Updated: Mar 18, 2018, 04:16 AM IST
The leaders of Germany and France, two of the euro zone’s biggest economies, said on Sunday that they have reached agreement on strengthening Europe's shaky banking sector.
German Chancellor Angela Merkel said she and French President Nicolas Sarkozy "are determined to do the necessary to ensure the recapitalisation of Europe's banks."
Europe must "have resolved its problems" by the time G20 leaders meet in Cannes at the beginning of November, French President Nicolas Sarkozy said.
The leaders spoke after talks at Berlin's chancellery aimed at forging an agreement ahead of a summit of the European Union's 27 leaders later this month.
Meanwhile, France, Belgium and Luxembourg agreed a rescue plan for Dexia SA on Sunday ahead of a planned board meeting expected to decide on a break-up of the first lender to fall victim to the euro zone crisis.
French Prime Minister Francois Fillon, his Belgian counterpart Yves Leterme and Luc Frieden, the finance minister of Luxembourg, where Dexia has a large presence, had found a solution for the stricken Franco-Belgian bank, Leterme’s office said on Sunday.
“The governments ... have reaffirmed their solidarity in finding a solution to secure the future of Dexia,” it said in a statement after two hours of talks at Egmont Palace in Brussels — also the site of talks on a previous Dexia rescue bid in 2008.
“The suggested solution, which is also the result of intense consultations with all partners involved, will be submitted to Dexia’s board of directors for approval,” Leterme’s office said without providing details of the rescue plan.
