Sarkozy Threatens To Pull France Out Of Euro

[Joanne98]

If you were wondering why the market is spooked by rumors that Germany may be returning to the DM, here is actual fact that French President is on the verge of reinstating the franc. And with that, the euro is nothing more than a political toy for Merkel, Sarkozy and whoever the current non-indicted head of the Italian government is, to achieve their political goals. The currency is now dead. Parity coming within a few weeks.

From The Guardian:

The markets were initially unsettled by news that the French president had threatened to pull France out of the eurozone. The startling threat was made at a Brussels summit of EU leaders last Friday, at which the deal to bail out Greece was agreed. according to a report in El País newspaper quoting Spanish Prime Minister José Luis Rodríguez Zapatero.

Zapatero revealed details of the French threat at a closed-doors meeting of leaders from his Spanish socialist party on Wednesday.

Sarkozy demanded "a compromise from everyone to support Greece ... or France would reconsider its position in the euro," according to one source cited by El País.

"Sarkozy went as far as banging his fist on the table and threatening to leave the euro," said one unnamed Socialist leader who was at the meeting with Zapatero. "That obliged Angela Merkel to bend and reach an agreement."

A different source who was at the meeting with Zapatero told El País that "France, Italy and Spain formed a common front against German and Sarkozy threatened Merkel with a break in the traditional Franco-German axis."

El País also quotes Sarkozy as having said, according to another of those who met Zapatero, that "if at time like this, with all that is happening, Europe is not capable of a united response, then the euro makes no sense".

http://www.zerohedge.com/article/sarkozy-threatens-pull-france-out-euro

[marmar]

1. Wow......C'est grandes nouvelles

nt

[dkf]

2. Germany has been the beneficiary of a weak euro.

Without it the DM would have strengthened enough to make German exports a lot more expensive.

No wonder the market is spooked though. Yikes.

[earthside]

3. Will the Dow go ...

... down 400 points now that the bailout is falling apart?

Or is 'good news good news' and 'bad new good news' to addicted gamblers?

[dkf]

4. Wasn't that the threat to make sure the bailout did go through?

Funny that it might end up kiboshing the whole thing.

The euro doesn't make sense without common policies though. It was inevitable that they would gave to make a choice between more coordination or disbandment.

[wtmusic]

5. France and Germany going at it again? Third time's a charm.

Can we use rubber bullets on this one, guys?

[OllieLotte]

6. actually it would be number four.

They have fought on numerous occasions, but they had a dandy one in the 1870's. French forces greatly outnumbered the German (Prussian). Results were the same.