Major European stock markets rallied Thursday as German and French backing for the struggling Greek economy appeared to reassure investors that Athens will not be defaulting on its debts anytime soon.
German and French stock markets saw significant gains after positive report from a conference call between the Greek, German and French leaders late Wednesday.
German Chancellor Angela Merkel and French President Nicolas Sarkozy said Wednesday they believe Greece should remain an integral part of the 17-nation euro zone despite a debt crisis that has forced Athens to seek emergency funds from its EU partners and the IMF.
Ms. Merkel and Mr. Sarkozy were speaking to Greek Prime Minister George Papandreou in a 25-minute telephone call late Wednesday. Mr. Papandreou said Greece will meet its commitments to implement austerity measures in return for international assistance.
Eurozone finance ministers will meet Friday in Poland to discuss the Greek debt crisis. U.S. Treasury Secretary Timothy Geithner also will attend the talks.