PARIS — Financial markets are signaling optimism that the leaders of Germany and France will deliver a cohesive plan that saves the euro through stricter oversight of government budgets.
French President Nicolas Sarkozy and German Chancellor Angela Merkel are meeting in Paris Monday. They will try to agree on a plan that would tighten political and economic cooperation among the 17 European Union countries that use the euro.
European stocks rose and bond yields fell on rising expectations that the leaders from all 27 EU countries would sign on to whatever plan Merkel and Sarkozy agree. Italy’s ten-year yield dropped 0.17 of a percentage point to 6.39 percent a day after the country’s new government agreed a package of austerity and growth measures.