French President Nicolas Sarkozy assured U.S. President Barack Obama on Wednesday the euro zone intends to resolve the euro crisis and support Greece, a French presidential source said.
The source, speaking on condition of anonymity, added the two leaders, who met in New York on the sidelines of the annual U.N. General Assembly session, also discussed the idea of including the Chinese yuan in the International Monetary Fund's special drawing rights (SDRs).
The two also discussed the need to support the economy in the United States and the necessity to recover financial stability at the heart of the euro zone.
Obama and Sarkozy further agreed "to encourage emerging countries such as China to develop policies to help the global economy," the source said.
"In this perspective the question of including the yuan in the SDR was discussed and President Obama supported the French idea to go toward the convertibility of the yuan and integration of yuan in the SDR," the source said.
The source said that Sarkozy explained to Obama the strategy and unified position of France and Germany, adding that the accord of July 21 must be put in place quickly.
"Greece must also take appropriate measures, but we reaffirmed our desire to resolve this crisis by supporting Greece and reaching an agreement with it," the source said.
Sarkozy said again that in the support package for Greece there must be flexibility in the European stability mechanism fund to face all risks of contagion -- especially for those countries facing market pressures such as Italy and Spain.
"We don't think that we are confronted by a risk of recession," the source said.
Separately, European Council President Herman Van Rompuy said on Wednesday that a Greek default would be avoided."The dangers of contagion, of default, of restructuring, of leaving the euro zone, are so big that you can't take that risk," Van Rompuy said at an appearance at New York University.
The comments by Van Rompuy and the French source came as the Greek cabinet adopted more austerity measures on Wednesday to secure a bailout crucial to avoid running out of money next month.
Source: www.reuters.com
The source, speaking on condition of anonymity, added the two leaders, who met in New York on the sidelines of the annual U.N. General Assembly session, also discussed the idea of including the Chinese yuan in the International Monetary Fund's special drawing rights (SDRs).
The two also discussed the need to support the economy in the United States and the necessity to recover financial stability at the heart of the euro zone.
Obama and Sarkozy further agreed "to encourage emerging countries such as China to develop policies to help the global economy," the source said.
"In this perspective the question of including the yuan in the SDR was discussed and President Obama supported the French idea to go toward the convertibility of the yuan and integration of yuan in the SDR," the source said.
The source said that Sarkozy explained to Obama the strategy and unified position of France and Germany, adding that the accord of July 21 must be put in place quickly.
"Greece must also take appropriate measures, but we reaffirmed our desire to resolve this crisis by supporting Greece and reaching an agreement with it," the source said.
Sarkozy said again that in the support package for Greece there must be flexibility in the European stability mechanism fund to face all risks of contagion -- especially for those countries facing market pressures such as Italy and Spain.
"We don't think that we are confronted by a risk of recession," the source said.
Separately, European Council President Herman Van Rompuy said on Wednesday that a Greek default would be avoided."The dangers of contagion, of default, of restructuring, of leaving the euro zone, are so big that you can't take that risk," Van Rompuy said at an appearance at New York University.
The comments by Van Rompuy and the French source came as the Greek cabinet adopted more austerity measures on Wednesday to secure a bailout crucial to avoid running out of money next month.
Source: www.reuters.com
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