September 15, 2011
The debt crisis in Europe showed signs of easing Wednesday, as heads of state said that Greece will keep using the euro currency, helping soothe the fears of a financial collapse on the continent and driving markets up.
French President Nicolas Sarkozy and German Chancellor Angela Merkel said they are “confident that Greece’s future is in the euro zone,” after a teleconference between the two leaders and Greek Prime Minister George Papandreou, according to a statement from Merkel’s spokesman.
That was enough to ease some of the mounting fear on global markets that the Mediterranean nation might default on its debt and pull out of the 17-nation euro currency zone, potentially causing calamitous ripple effects across the world financial system.
U.S. Treasury Secretary Timothy F. Geithner said at a conference in New York that Merkel has told him that she will not allow a financial collapse akin to the one that followed the bankruptcy of Lehman Brothers in 2008. “I think she recognizes that they’ve got to do some more to make sure that they make that commitment credible to the world,” Geithner said.
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