Europe pledges debt resolution.

11th October 2011

Ian Copelin, Investment Director, my wealth comments, “The FTSE-100 added to last week’s gains by climbing another 1.8% today (10 October 2011), after the leaders of France and Germany pledged to deliver a plan to stem the debt crisis in three weeks.  The FTSE-100 has now risen 10.89% since its low last Tuesday (4 October 2011.)

European leaders today postponed a debt-crisis summit, planned for 18 October, amid tensions between Germany, France and the European Central Bank over possible deeper-than-planned write downs of Greek bonds.  The meeting will now be held on 23 October.

The German Chancellor, Angela Merkel, and the French President, Nicolas Sarkozy, said yesterday that they will deliver a plan to recapitalise European banks and address the Greek debt crisis before the Group of 20 summit on 3 November.

This is very good news as it commits the two most important European Union leaders to deliver results and provide the market with a fixed date – hopefully this will help curb the recent day-to-day volatility.”