France, Germany Agree to Euro Rescue

    German Chancellor Angela Merkel addresses the media during a joint news conference with the President of Uruguay, Jose Mujica, after a meeting at the chancellery in Berlin, Germany, Tuesday, Oct. 18, 2011. Mujica is on a two day visit in Germany. (AP Photo/Michael Sohn)

    Michael Sohn / AP Photo

    France and Germany have agreed to create a €2 trillion rescue fund as part of a larger solution to the continent’s economic woes; leaders from both countries expect the plan to be adopted at a meeting of European officials this weekend. The plan is designed to reassure depressed markets in Europe and worldwide ahead of the G20 summit in Cannes, France, early next month. France agreed to the deal because of mounting pressure on its banks, including a possible downgrade of its AAA credit rating. American markets made dramatic gains at the close of trading Tuesday on news of the deal. However, Moody's cut Spain's rating by two levels the same day.

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