Saturday, July 28, 2012
Germany, France Back Pledge to Save Euro
July 27, 2012
The leaders of Germany and France threw their weight behind European Central Bank President Mario Draghi's pledge to protect the euro with decisive action, delivering a crucial political endorsement for the ECB's use of its printing press to buy beleaguered nations' bonds.
The remarks, from German Chancellor Angela Merkel, French President François Hollande and others, helped propel a broad market rally that began Thursday after Mr. Draghi's declaration.
Ms. Merkel and Mr. Hollande held a phone conference Friday and released a statement saying they are "deeply committed" to the euro zone and "determined to do everything to protect it." In a reference that seemed to endorse Mr. Draghi's remarks, the leaders said euro-zone member states and European institutions must live up to their responsibilities in their areas of competence.
German Finance Minister Wolfgang Schäuble also signaled his support for Mr. Draghi.
The public display suggests that Mr. Draghi's comments were part of an orchestrated effort among the region's key power centers to calm restive markets.