Loss of confidence in the financial conditions of eurozone countries with mounting debts has destabilized financial markets, and the uncertainty now threatens to put the global economy in jeopardy. Amid the crisis, Chancellor Angela Merkel of Germany and President Nicolas Sarkozy of France met in Berlin on Monday, searching for ways to end the crisis.
It is hoped that Germany and France, the strongest countries in the eurozone, will exercise leadership so that Europe will come up with a grand program to overcome the crisis or at least a road map to work one out at an early date.
To make up for losses caused by the sovereign debt crisis, European banks holding a large amount of bonds of problem eurozone countries are withdrawing funds used for investment in emerging economies. This will cool these economies, which underpin the global economy.