Merkel and Sarkozy Urge EU Commission to Ban Naked Short Selling of Shares and Debt

Germany and France are calling for the rapid introduction of an EU-wide ban on the short selling of some shares and government debt.

Photo: Merkel and Sarkozy Urge EU Commission to Ban Naked Short Selling of Shares and Debt

German Chancellor Angela Merkel and French President Nicolas Sarkozy co-signed a letter urging the European Commission to bring forward proposals for tougher rules on financial speculation, including a ban on naked short selling, from October to July this year, Money Marketing says.

The joint letter to the EC was interpreted as an attempt by Germany and France to show that the two biggest powers in the eurozone are united.

It followed the last-minute cancellation on Monday of a meeting between the two leaders, where they had been expected to co-ordinate their position ahead of an EU summit in June 17 which will focus on the euro-zone crisis, Telegraph reports.