Sarkozy: Greece should create fund to pay debt

[February 06, 2012]  PARIS (AP) -- French President Nicolas Sarkozy says France and Germany agree that Greece should place state revenues into a separate fund to pay down its crushing debt and avoid bankruptcy.

Sarkozy has also told a Paris news conference with German Chancellor Angela Merkel that Greece's new leaders must "take their responsibility" and that any new bailout will require taking decisions to reduce debt.

The comments came after Monday's 14th French-German Council of Ministers, which focused on coordinating the countries' tax policies as well as Europe's debt crisis.

France and Germany have helped underpin a second planned euro130 billion ($171 billion) bailout for Greece to avoid bankruptcy next month. The plan has run into political resistance in Greece over the strict austerity terms involved in the bailout.

[Associated Press]

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.