Sarkozy, Merkel and Monti meet on debt crisis

GERMANY: The leaders of the eurozone's three largest economies were scheduled to meet in a bid to resolve their differences over how to handle Europe's critical debt crisis.

President Nicolas Sarkozy of France were to host Chancellor Angela Merkel of Germany and Italy's Prime Minister Mario Monti ,who took office last week after concerns over Rome's reform plans forced out his predecessor Silvio Berlusconi.

Together they will seek ways to "accelerate" the 17-nation bloc's bid to calm bond markets by undertaking reforms of its financial governance, as the crisis threatens to spread to Spain and the eurozone core.

Sarkozy has an additional goal: with five months to go before he seeks re-election he has staked his credibility on France keeping its top AAA credit rating, despite warnings from agencies that it is under threat.

Germany, still seen as the strongest eurozone economy, has so far escaped the fury of the markets but its long term economic health depends on its EU trading partners reducing their deficits and stabilising the economy. AFP