Report: Merkel, Sarkozy finding common ground on Greek debt
Berlin - German Chancellor Angela Merkel and French President Nicolas Sarkozy were approaching a possible compromise on a write-down of Greek debt, ahead of talks between the two leaders Sunday in Berlin.
Germany appeared willing to grant French demands for greater flexibility in the funding of the European Financial Stability Facility (EFSF) bailout mechanism, in return for a write-down of Greek debt, Welt am Sonntag newspaper wrote in an article to be published Sunday.
Until now, France has rejected German demands for a haircut on Greek bonds, many of which are held by French banks.
The newspaper reported that Sarkozy was willing to reconsider, if Germany agreed to grant the EFSF access to European Central Bank (ECB) funds, a position that Berlin has so far rejected.
Merkel and Sarkozy are due to meet in Berlin, officially to discuss an upcoming European Union summit and a special meeting of eurozone leaders in Brussels. However, the meeting was expected to be dominated by bank rescue plans, amid the ongoing eurozone debt crisis.//DPA
