Germany and France have reached an agreement on how to deal with Europe's debt crisis, a statement by French President Nicolas Sarkozy's office said Thursday. The agreement came after a marathon 7 hour meeting between Sarkozy and German Chancellor Angela Merkel in Berlin Wednesday night.
Germany had previously demanded that Greek banks take a loss on outstanding debt in return for further EU assistance. France and the European Central Bank had opposed this, fearing it could push other economies, likes Spain's, into a crisis as well. The talks included discussions on the possibility of a new loan package for Greece, and a tax on banks.