French govt calls for rapid application of summit measures

Paris on Wednesday called for the decisions taken at June's EU summit to be applied "rapidly and firmly", French government spokesman Najat Vallaud-Belkacem said following a cabinet meeting. European leaders agreed on a number of measures to combat the eurozone crisis at the summit, including plans to allow EU rescue funds to be used to support the bonds of countries facing soaring borrowing costs. This mechanism, the so-called spread shield, has been thrown in doubt after the governments of the Netherlands and Finland expressed reservations. Recent market nerves look to be pushing Spain towards a bailout and Italy is seen as the next country in danger of "contagion" from the crisis. Vallaud-Belkacem said the need to apply the measures was "emphasised" by Moody's decision to change the outlook of Germany, the Netherlands and Luxembourg from stable to negative this week.