France and Germany agree mechanism for future crises

European finance ministers have given their blessing to the outline of a new permanent mechanism to deal with future eurozone financial crises, after a deal was brokered in Brussels with France and Germany

Ireland has surrendered. All that now remains is the detail - and we may not get that for some time.

IN THE week hours, euro-zone finance ministers finally reached an agreement on how to proceed with a new bail-out for struggling Greece. The indefatigable Charlemagne provides details:

European stocks and the euro rallied on Thursday after France and Germany issued a joint defence of Greece, saying its place was in the eurozone despite market sentiment it might default.But official EU data forecasting eurozone growth of 1.6 percent this year, also pointed to a deterioration and slowdown in the second half of the year.Despite the much needed vote of confidence and talk of an EU deal on tighter budget discipline seen as vital to prevent future debt crises, many still expect Greece to default on its debt, risking its exit from the single currency.

Germany and France agree that private creditors should participate in a new rescue programme for Greece – but only on a voluntary basis

Germany and France agree that private creditors should participate in a new rescue programme for Greece – but only on a voluntary basis

France and Germany agree that idea of a European-style IMF is not aimed at helping Greece now but is a medium-term project, France's prime minister said Wednesday after talks in Berlin."We are in agreement about discussing instruments for the medium term if crises of this kind (like Greece) repeat themselves, including a proposal on the table for a European monetary fund," Francois Fillon said after talks with Chancellor Angela Merkel."We see this proposal as something ... for the medium term."Merkel, for her part, said that an EMF would be "at the end of a chain."

German Chancellor Angela Merkel reiterated her determination on Thursday that investors should contribute to the costs of a future eurozone debt bailout but stressed this applied to future rescues only."We in the federal government are absolutely convinced it is necessary that creditors contribute to the cost in any future -- and I underline 'future' three times so that the markets understand -- mechanism," said Merkel.