France and Germany will not let the Euro fail – Nicholas Sarkozy

French President Nicholas Sarkozy - Backing the Euro to the Hilt

French President Nicholas Sarkozy – Backing the Euro to the Hilt

Reiterating his commitment to the Euro, French President Nicholas Sarkozy said: “Whether it be Chancellor (Angela) Merkel or myself, never will we turn our backs on the euro”. Mr. Sarkozy was addressing the World Economic Forum (WEF) summit being held in Davos, Switzerland.

Acknowledging that doubts still persist over the future of the Eurozone currency following bailout packages to Greece and the Irish Republic, Mr. Sarkozy said that those who are betting against the currency should watch out for their money.

“The euro spells Europe. The euro is Europe and Europe has spelled 60 years of peace on our continent, therefore we will never let the euro go or be destroyed”, Mr. Sarkozy argued.

Talking about his vision about the G20 group – which France presides over now, the French President called for international currency reform. He said the G20 should develop new indicators to identify and measure imbalances on issues related to trade, currency and current account. Mr. Sarkozy’s opinion has been given a cold shoulder by the US, which sees it as an effort to undermine the dollar as the world’s currency.

However, dispelling the notion that he’s trying to dislodge the dollar as the preferred currency, Mr. Sarkozy said: “The dollar will continue to be the world’s number one currency”. He said that France was “deeply attached” to its friendship with the US.

Mr. Sarkozy said that the IMF’s mandate should be expanded to include measuring and enforcing new rules on global imbalances. “I think it’s worthwhile rethinking the IMF statutes to make it the organisation in charge of economic, financial and monetary policy co-ordination, and of enforcing the indicators”, he said.

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