Europe tries to douse debt crisis

BRUSSELS – French President Nicolas Sarkozy and German Chancellor Angela Merkel say EU leaders have agreed to a European intervention mechanism to calm markets that have been rattled by the Greek debt crisis.


Sarkozy and Merkel spoke early Saturday following an emergency summit of eurozone nations that are worried the problems in Greece could spread to other countries, including Spain and Portugal.

Sarkozy also says European finance ministers will hold an emergency meeting Sunday to work out a plan to fight speculation against their joint currency, the euro.

European leaders also have agreed on a series of strong steps to stamp out the spiralling debt crisis, including consolidating public finances, bringing in the European Central Bank to ensure eurozone stability and possibly set up a European mechanism to preserve financial stability and prevent future crises like the one that has engulfed Greece. — AP