Brussels, 31/07/2012 (Agence Europe) - Each day brings a new statement by European leaders determined to do whatever it takes to protect the eurozone. After meeting in Paris on Tuesday 31 July 2012, the French president, François Hollande, and the Italian prime minister, Mario Monti, issued a joint press release stating that France and Italy are both deeply attached to the full eurozone and are determined to do all its take to protect it. A joint Franco-Italian summit will be held in Lyons (France's financial centre) at the end of 2012.
The two leaders welcome recent statements by the president of the ECB, Mario Draghi who, last week, hinted at the European Central Bank making a large-scale intervention on the markets (see EUROPE 10664). The ECB Governing Council meets on Thursday 2 August. Meanwhile, the head of the Eurogroup, Jean-Claude Juncker, said that the ECB and the EFSF (eurozone bailout fund) would be working together, but didn't give any details or timeline (see EUROPE 10666). The intervention will cut the interest rates charged to roll over the debt of Spain and Italy, both of which are making huge cuts and economic reforms, but are still coming under attack from the money markets. Hollande and Monti say that several eurozone nations are being charged too high an interest rate to roll over their finance despite the fact that they are carrying out necessary, but difficult, economic reforms. The two leaders add that the funds and instruments decided upon at the eurozone summit in June must be used earlier than planned, if necessary. Monti will be in Madrid on Thursday to meet the Spanish prime minister, Mariano Rajoy, and on the same day, Madrid will be issuing ten-year bonds to the tune of €2 to €3 billion. (MB/transl.fl)