Major European stock markets rallied Thursday as German and French backing
for the struggling Greek economy appeared to reassure investors that Athens will
not be defaulting on its debts anytime soon.
German and French stock markets saw significant gains after positive report
from a conference call between the Greek, German and French leaders late
Wednesday.
German Chancellor Angela Merkel and French President Nicolas Sarkozy said
Wednesday they believe Greece should remain an integral part of the 17-nation
euro zone despite a debt crisis that has forced Athens to seek emergency funds
from its EU partners and the IMF.
Ms. Merkel and Mr. Sarkozy were speaking to Greek Prime Minister George
Papandreou in a 25-minute telephone call late Wednesday. Mr. Papandreou said
Greece will meet its commitments to implement austerity measures in return for
international assistance.
Eurozone finance ministers will meet Friday in Poland to discuss the Greek
debt crisis. U.S. Treasury Secretary Timothy Geithner also will attend the
talks.