France is pressing the EU to adopt a financial stability package to stem the eurozone crisis, believing negative market reaction to the €100bn bailout of Spain’s banks shows the need for more comprehensive action.
In advance of the EU summit due on June 28, Paris is set to propose measures to put the European Central Bank in charge of bank supervision and to use the European Stability Mechanism – the new €500bn eurozone rescue fund set to come into force next month – to recapitalise banks directly.
President François Hollande’s Socialist government has made clear it regards agreement about urgent moves to tackle the eurozone debt crisis as top priority.
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