French President Nicolas Sarkozy said the euro-region’s financial crisis is stabilizing thanks to measures taken by European leaders.
“We can say -- with caution -- that we see elements of financial stability in France, in Europe and in the world,” Sarkozy said in a nationally televised interview in Paris today. “Europe is no longer at the edge of the cliff.”
The comments came on the eve of a European Union summit in Brussels where where leaders are set to put the finishing touches on a German-led deficit-control treaty and endorse the statutes of a 500 billion-euro ($661 billion) rescue fund to be set up this year.
Greece and its private creditors said Jan. 28 they expect to complete a deal in coming days after bondholders signaled they would accept European government demands for a bigger cut in debt holdings.
Efforts to hold the 17-member euro area together come against a deteriorating economic outlook, with the euro economy set to contract by 0.5 percent this year, according to the median of 19 economist forecasts compiled by Bloomberg.