Sarkozy, Zapatero Agree On Stronger Euro-zone Convergence
Baku, January 22 (AZERTAC). French President Nicolas Sarkozy and his Spanish counterpart Jose Luis Zapatero agreed on the need for a stronger convergence of euro-zone member countries` economic policies, a statement from the French president`s office said Friday.
At a meeting in Paris, both men also agreed on the need to boost their economies` competitivity as well as the need to set up a European economic government, the statement said.
Sarkozy hailed Zapatero`s "courage" and the "very strong measures" he implemented to reform Spain`s economy, assuring his Spanish counterpart of "France`s full support and solidarity."
Zapatero left the French presidency without commenting on the Spanish government`s plan to bolster the capital and transparency of the savings banks, known as cajas.
The Wall Street Journal reported this week that Spain plans to raise up to EUR30 billion to inject into the cajas and to pass legislation that would force them to adopt more transparent ownership and governance structures.
The state of Spain`s cajas is at the forefront of investor concerns regarding Spain since Ireland`s finances buckled under the weight of massive losses at its banks. Spain, like Ireland, is grappling with the collapse of a lengthy housing boom. The cajas--unlisted entities with close ties to local communities--have borne the brunt of the collapse.
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