国际英语新闻:Markets Unimpressed by France-Germany Euro Plans

The European Commission supports the proposals made by France and Germany on Tuesday to shore up the eurozone, its spokesperson said Wednesday. The markets, however, have not reacted so favorably.

Olivier Bailly, the EU spokesperson, said the commission supports the objectives put forward by French President Nicolas Sarkozy and German Chancellor Angela Merkel on Tuesday. 

"We already mentioned the need to strengthen the economic part of the economic and monetary union," Bailly said. "What is happening now since the beginning of the crisis, and what has been announced yesterday as a proposal by France and Germany, go exactly in this direction.”

Sarkozy and Merkel held emergency talks Tuesday to discuss Europe’s sovereign debt crisis.

Following the talks, they said closer economic integration in Europe is needed. Sarkozy called for a “new economic government” that would be formed of the 17 eurozone government leaders. He said it should meet twice yearly and be led by European President Herman Van Rompuy.

France and Germany also called for constitutional amendments across the eurozone that would require governments to balance their budgets.

The leaders backed away from the idea of issuing “eurobonds” - bonds that would be issued by the eurozone as a whole rather than by individual countries. Some analysts, investors, and European politicians think eurobonds would be the best way to restore faith in European debt and calm volatile markets.

Bailly said Wednesday that eurobonds are an interesting idea but are not on the agenda right now.

"We don't think that this is a solution for today's problem and we don't think that there is a political consensus within Europe to move forward today with this idea," said Bailly.

Overall the market reaction to the new plans was not positive, with shares falling early in the trading day Wednesday, followed by a slight recovery.

Dominique Dequidt, an Asset Manager at KBL Richelieu in France, said the market reaction is uncertain because the decisions made Tuesday were not as bold as the markets were expecting.