Sarkozy and Merkel discuss crisis

Meeting in Paris may engineer a Eurozone financial rescue package.

    Merkel and Sarkozy have clashed in the past on the correct response to the financial crisis [EPA]

    But the Germans shot down the idea.

    "In the days since, we have seen individual responses," Seddon said.

    Prickly relationship

    Chancellor Merkel and President Sarkozy, whose relationship is often described as prickly, were together at a ceremony on Saturday before the leaders' meeting.

    "The speculation is about what they may say to us afterwards," Seddon said.

    "All ears and eyes will be on them to see whether they will talk beyond financial regulation to a new attempt at a Europe-wide bailout going into this meeting with the other EU leaders."

    Seddon said that the meeting is crucial to having any chance of putting rescue measures in place before the markets re-open on Monday.

    "The speculation here in Paris is that [there may be] some agreement to model a Eurozone bailout recovery package very much on what the British did.

    "In other words a partial nationaisation of the banks - we've already seen that. But major re-capitalisation, moves to get the banks to lend again to each other," Seddon said.

    He said that leaders appeared to believe that an international, rather than national, response to the crisis was now needed.

    SOURCE: Al Jazeera


    YOU MIGHT ALSO LIKE

    Interactive: How does your country vote at the UN?

    Interactive: How does your country vote at the UN?

    Explore how your country voted on global issues since 1946, as the world gears up for the 74th UN General Assembly.

    'We were forced out by the government soldiers'

    'We were forced out by the government soldiers'

    We dialled more than 35,000 random phone numbers to paint an accurate picture of displacement across South Sudan.

    Interactive: Plundering Cambodia's forests

    Interactive: Plundering Cambodia's forests

    Meet the man on a mission to take down Cambodia's timber tycoons and expose a rampant illegal cross-border trade.