Euro Crisis Update: Merkozy, Dexia, Nobel Prize, Dual Currency

The leaders of Germany and France have promised to unveil new measures to solve the euro zone’s debt crisis by the end of the month. EUX.tv’s Ray Frenken digests the latest developments in this euro crisis update. That as international pressure builds for bold steps from Europe to avert an economic backlash of global proportions. German Chancellor Angela Merkel and French President Nicolas Sarkozy said after talks in Berlin on Sunday evening that their goal was to come up with a sustainable answer to the problems in Greece. They also agreed on the need to recapitalise European banks and to present a plan for accelerating economic coordination in the euro zone before a G20 summit in Cannes on 3-4 November. But they declined to reveal any details of their plan ahead of an EU summit of heads of states on 17-18 October that is expected to flesh out the proposals. British Prime Minister David Cameron urged Merkel and Sarkozy to take a “big bazooka” approach to the crisis, telling the Financial Times that euro zone leaders had to break their cycle of doing “a bit too little, a bit too late”. Meanwhile here in Brussels, the Belgian government has nationalized the Belgian arm of French-Belgian bank Dexia, which was severely exposed to Greek government debt. Belgium is taking on responsibility for some 60 percent of Dexia’s debt, which can cost it as much as 60 billion euro. Economists are wondering what the consequences will be for Belgium’credit rating. Dexia is not the only …