Germany and France, the biggest euro economies, are headed for a showdown at tomorrow’s European Union summit over their views on how to stem a debt crisis that threatens the single currency’s survival.
German Chancellor Angela Merkel said she won’t shy away from disagreeing with French President Francois Hollande at the summit in Brussels over dinner at 7 p.m., the next major appointment of leaders seeking to allay concerns that Greece may quit the euro, putting Spain and Italy at risk as well.
The euro has lost 3.3 percent against the U.S. dollar this month and almost $4 trillion has been wiped from equity markets amid concerns over Greece.
No crisis solution can work without Merkel, who heads Europe’s largest economy. Germany contributes the most of any country to the EU’s financial backstops and bailouts for Greece, Ireland and Portugal.