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European Commission rebukes Sarkozy on interest rates and trade

International Herald Tribune -  The European Commission delivered a sharp response Friday to President Nicolas Sarkozy of France over his recent comments on interest rates and trade policy, underlining European economic policy divisions before the coming Group of 8 summit meeting.

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Fiscal policy is our most potent instrument

Financial Times - Fiscal policy, more than monetary policy, will determine how and when this crisis will be resolved. The best contribution central banks could make is to help the money markets. I still believe some explicit currency-zone level money market insurance scheme is the way to go. By all means, cut [...]

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Sarkozy and the political potshot

IHT - For a temporary job, being Europe’s leader for six months is a tough one, battling for Master of the Universe status with limited firepower and wavering support for big ideas. Nicolas Sarkozy tries. He has sprayed concepts, some of them good ones, like buckshot from a scattergun at international issues and problems.

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Germany and France Compete for Role of Financial Savior

Spiegel - As tremors shake markets around the world, European partners Germany and France have gone separate ways in fighting the crisis. Sarkozy wants to bring banks and threatened industries under the government’s protection, but Merkel is opposing such state intervention.

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