Plans to tackle the eurozone debt crisis have stalled, with France and Germany clashing over the size of stimulus needed to secure the future of the eurozone.
French President Nicolas Sarkozy is calling for more stimulus than the proposed €440bn European Financial Stability Fund (EFSF), while German Chancellor Angela Merkel has opposed the idea. According to The Times, Sarkozy yesterday demanded the EFSF be turned into a fully fledged bank with the power to draw on funds from the European Central Bank, raising the level of available stimulus to €2trn. Sarkozy believes this is the only way to ensure France's AAA-credit rating will remain intact. Meanwhile, Germany favours a mechanism to guarantee a percentage of losses on the issue of new...
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