France says Europe has sent strong signal to markets

PARIS (BestGrowthStock) – Europe has sent a strong signal to markets that it is ready to defend the euro after agreeing on a massive package to stave off contagion from the Greek debt crisis, French Economy Minister Christine Lagarde said on Monday.

“It is an extremely strong signal given to the markets that the Europeans will defend themselves and will fight to defend the euro,” a weary-sounding Lagarde told Europe 1 radio after marathon talks in Brussels that ended in the early hours.

The comments followed an accord in which European Union finance ministers agreed on an emergency loan package that, with IMF support, could reach 750 billion euros ($1,006 billion) to prevent the debt crisis spreading throughout the euro zone.

“It’s clearly a coordination of a kind we have never seen before to show in concerted fashion that the music is over and the euro is resisting,” Lagarde said.

“I am convinced that the mechanism is going to work.”

Early market reaction to the package appeared positive, with the euro rising in Asian trade.

“It’s a good first signal,” Lagarde said, adding she would be watching the opening of European markets later on Monday.

Stock Market Report

(Writing by James Mackenzie; Editing by Paul Tait)

France says Europe has sent strong signal to markets