Bloomberg News

Euro Crisis Stabilizing After Policy Response, Sarkozy Says

January 29, 2012

(Adds EU summit in third paragraph.)

Jan. 29 (Bloomberg) -- French President Nicolas Sarkozy said the euro-region’s financial crisis is stabilizing thanks to measures taken by European leaders.

“We can say -- with caution -- that we see elements of financial stability in France, in Europe and in the world,” Sarkozy said in a nationally televised interview in Paris today. “Europe is no longer at the edge of the cliff.”

The comments came on the eve of a European Union summit in Brussels where where leaders are set to put the finishing touches on a German-led deficit-control treaty and endorse the statutes of a 500 billion-euro ($661 billion) rescue fund to be set up this year.

Greece and its private creditors said Jan. 28 they expect to complete a deal in coming days after bondholders signaled they would accept European government demands for a bigger cut in debt holdings.

Efforts to hold the 17-member euro area together come against a deteriorating economic outlook, with the euro economy set to contract by 0.5 percent this year, according to the median of 19 economist forecasts compiled by Bloomberg.

--Editors: James Hertling, Andrew Atkinson

To contact the reporters on this story: Helene Fouquet in Paris at hfouquet1@bloomberg.net; Mark Deen in Paris at markdeen@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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