Unity between leaders in France and Germany was seen today as both French President Nicholas Sarkozy and German Chancellor Angela Merkel made statements about a new plan, dubbed the “Vienna Initiative,” that may lead to approval for an aid package to Greece. The EUR was seen trading moderately stronger following the news as it has taken pressure off investors who were concerned about an impending default.
Many analysts claim that the initiative wasn’t a new one and many were in fact expecting such an 11th-hour agreement to be struck. The rise in regional risk appetite and the positive impact on European shares and bond spreads has so far provided a glimpse of hope for an economic turnaround following the expected sluggish second quarter.
