Sarkozy: Eurozone "explosion" unacceptable

French President Nicolas Sarkozy and President Obama walk together during arrivals for the G20 summit in Cannes, France, Nov. 3, 2011.
Pool,AP Photo/Philippe Wojazer

CANNES, France - French President Nicolas Sarkozy says European leaders cannot accept the "explosion" of the euro and cautiously welcomed Greece's decision to scrap a referendum on a hard-fought European bailout plan.

Sarkozy said European leaders will meet again Thursday night to try to work out ways to stem Europe's debt crisis.

Speaking to reporters at a summit of Group of 20 leading world economies Thursday, Sarkozy said "we cannot accept the explosion of the euro, which would mean the explosion of Europe."

The Greek prime minister's earlier idea to hold a referendum on the European plan to cut Greece's debt horrified other European nations and sparked a sharply negative reaction from world markets.

The eurozone is scrambling for a response to the political turmoil in Greece and growing concerns over Italy.

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A European official says senior officials from the eurozone will meet again Thursday night on the sidelines of a summit of the Group of 20 leading economies in Cannes.

The official says the meeting will include the leaders of France, Germany, Italy and Spain as well as representatives of the ECB, the EU and the IMF. He was speaking on condition of anonymity because of the sensitivity of the issue.

The eurozone is under pressure to build up firewalls to its debt crisis, which threatens to spread from Greece to the rest of Europe.

At the same time, leaders want a clear sign that Italy will implement reforms meant to save it from financial disaster.

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