German Chancellor Angela Merkel and French President Nicolas Sarkozy affirmed that “agreement is total” between France and Germany in a press conference from Berlin today.
Sarkozy said that he and Merkel were confident the crisis will be solved “before the month is over.” Both were short on details, however.
It appears as though disagreements about how to use the $590 billion available from the European Financial Stability Facility could still be complicating consensus between the two EU leaders.
Merkel has argued that banks should turn first to their own investors to raise more cash. The French position advocates more activist use of EFSF funds to recapitalize banks across the eurozone.
Merkel and Sarkozy also alluded to greater fiscal consolidation in the eurozone, suggesting that treaty revisions could be a next step towards a more stable eurozone.
This press conference is unlikely to insure investors looking for concrete plans that the eurozone is nearing an endgame. However a meeting of G20 finance ministers later this week and EU leaders next week could prove more promising for markets.