Franco-German talks fail to reassure markets

Stocks in Europe fell on Wednesday after a meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel late on Tuesday to discuss the area’s rescue fund and borrowing.

The duo had been under pressure to re-establish market confidence after a bout of volatility and uncertainty.
Tokyo’s Nikkei and S&P 500 were 0.6 percent and 0.97 percent down respectively at close of trading. Frankfurt dropped 1.5 percent, while London’s FTSE and Paris CAC were both down 1 percent in early trading.
The leaders of Europe’s strongest economies revealed plans late on Tuesday for closer eurozone incorporation, including biannual summits and deficit boundaries but announced that euro bonds are an option only in the long-term. A president is also to be elected to represent the bloc. European Council President, Herman Van Rompuy, is a likely candidate according to reports.


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