Germany, Global Economy | featured news

Germany and France clashed on Wednesday over whether the ECB should take bolder steps to stem the euro zone debt crisis, with Chancellor Angela Merkel issuing one of her starkest warnings yet against fiddling with the central bank's strict inflation-fighting mandate.

The leaders of Germany and France, the eurozone's two biggest economies, say they have reached agreement on strengthening Europe's shaky banking sector.

After a series of positive announcement from Greek FinMin Venizelos, rumors that Moody's would downgrade French banks and Germany was preparing for a Greece to default send equities tanking, particularly French banks.

President Barack Obama said on Tuesday that he and German Chancellor Angela Merkel agreed that Europe's debt crisis must be contained.

Germany's economy in 2010 grew at its strongest rate since the country's reunification, propelled by exports and rising investment, the Federal Statistics Office said.

Any accord is unlikely to require the most powerful surplus economies, China and Germany, to make substantial policy changes in the short term.