France and Germany to aid Greece

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Germany and France have united to resolve Greece’s debt crisis, French President Nicolas Sarkozy and German Chancellor Angela Merkel agreed on the need for a new bailout package for the country.

Officials from Germany and France have announced that they had reached common grounds on the delicate topic of involving Greeces bondholders, calming fears Germany wanted to see loss forces on private creditors. Earlier last week, the eurozone finance ministers were unable to come up on deal to rescue loans to save Greece.

Sarkozy said “relatively precise principles” for the private-sector involvement would now have to be fixed, adding that “this can be put into place relatively quickly.” While Merkel added, “We do not want that. She further stressed, “This is about a voluntary participation.”

The EU’s top financial official, Olli Rehn, indicated that Greece will likely get its next financial lifeline in July if Prime Minister George Papandreou’s government can pass new budget cuts and privatizations before the end of the month. The next euro12 billion ($17 billion) injection would keep the country afloat until September.

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