Group items tagged

French president Nicolas Sarkozy warned of damage to Franco-German relationship if Angela Merkel opposed EU plan

Rumors of the imminent collapse of the eurozone continue to swirl despite the Europeans' best efforts to hold the currency union together. Some accounts in the financial world have even suggested that Germany's frustration with the crisis could cause Berlin to quit the eurozone - as soon as this past weekend, according to some - while at the most recent gathering of European leaders French President Nicolas Sarkozy apparently threatened to bolt the bloc if Berlin did not help Greece. Meanwhile, many in Germany - including Chancellor Angela Merkel herself at one point - have called for the creation of a mechanism by which Greece - or the eurozone's other over-indebted, uncompetitive economies - could be kicked out of the eurozone in the future should they not mend their "irresponsible" spending habits.

Earlier on Tuesday, French President Nicolas Sarkozy said the nuclear fuel swap with Iran was a "positive step" and it was waiting for Tehran to provide full written details, as China and Lebanon also voiced their support for the new deal.