December 8, 2011
Economic powerhouse Germany played down hopes Wednesday that a crucial debt summit will save the euro as French President Nicolas Sarkozy warned the risk of a eurozone “explosion” was very real.
Piling the pressure on EU leaders due to meet in Brussels from Thursday, Standard and Poor’s put a number of large European banks on review and placed the European Union on watch for a downgrade of its AAA credit rating.
German officials said reaching a deal would be “difficult” as US Treasury Secretary Timothy Geithner pressed Europe for decisive action to tackle the crisis and US President Barack Obama spoke to German Chancellor Angela Merkel.
“Europe is not out of the crisis. The risk of an explosion abounds as long as the decisions taken with Angela Merkel are not implemented,” Sarkozy told lawmakers from his ruling UMP party, according to a participant in the meeting.