Daily digest: Sarkozy-Merkel meeting failed on the markets

The daily press meeting in the EU commission was maybe one of the shortest ever. Reason: Most journalist were in Paris to follow Sarkozy and Merkel’s meeting over the eurozone crisis. Here is a digest of what they said, and a few other headlines you should now about today.

First of all the US stocks has reacted negative on the meeting. Merkel and Sarkozy failed to produce solutions according to the market. There is especially two reasons why the market didn’t react positive on the meeting.

1. Merkel and Sarkozy could not agree on issuing eurobonds to fund struggling members, which many had hoped to be a solution to the present crisis in the eurozone. Instead they pledged for eurozone unity, which is good according to Joschka Fischer. But this new unity was not enough to satisfy the markets as commenters already feared shortly after the meeting.

2. The other reason the market reacted negative on the meeting is Nicolas Sarkozy’s plans to introduce a “Tobin tax”, which is a minor tax on every currency transaction.

If you want to read more about the press conference held by the two leaders both businessinsider.com and Der Spiegel have covered it.

Yesterday it was also revealed that Germany might not have such a strong economy as thought. Here is a few thoughts on that. Also France has a declining economy, if you should be in doubt.

Finally a court opened an investigation yesterday into charges that the new International Monetary Fund’s leader, Christine Lagarde, abused her power as France’s finance minister in 2007.

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