France confirms will not discuss eurobonds with Germany

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France's President Nicolas Sarkozy will not bring up the idea of issuing joint eurobonds to fund eurozone government debt at Tuesday's summit with Germany's Angela Merkel, his office said.

The Elysee issued the statement shortly after a German government spokesman had said eurobonds would not be on the agenda at the Paris talks, triggering falls on the French and Spanish stock markets.

France had not said publicly it planned to bring up the eurobonds idea, but Sarkozy has been clear that he wants to push forward with more centralised eurozone financial controls, despite German resistance.

French stocks fell into the red after the German statement -- a government spokesman had warned markets "not to expect something spectacular" from Tuesday's talks -- before rallying slightly.

© 2011 AFP

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