Eurozone CDS spreads fall on French-German fiscal deal

Hand shake

Credit default swap (CDS) spreads on sovereigns and banks across the eurozone have declined at the start of what was billed as a crunch week for the single currency, after France and Germany settled on a new fiscal union framework for the euro.

The details of the deal were released after a meeting between German chancellor Angela Merkel and French president Nicolas Sarkozy in Paris today, and might be agreed by the eurozone by mid-March next year – although an end-of-week European Union summit

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