Euro’s death would be ‘cataclysmic’

French President Nicolas Sarkozy vowed Thursday that he and European partners will “never turn our backs on the euro,” calling it a linchpin of peace and prosperity despite the government debt crises worrying investors and leaders worldwide.

Hours before he spoke at the World Economic Forum in Davos, the Alpine winter calm was briefly disrupted by a small explosion at a hotel – unusual for this Swiss resort, blanketed in security during the annual forum. Windows were broken but there were no injuries, Swiss police said. Forum organizers said a firework was to blame.

Mr. Sarkozy also expressed concerns about currency imbalances and rising commodity prices, priorities as he presides over the Group of 20 leading world economies this year. But his most vigorous words concerned the euro, shared by 17 countries across the European Union.

“The disappearance of the euro would be so cataclysmic that we can't even possibly entertain the idea,” he said.

He acknowledged months of worries about the euro's survival since the European Union and International Monetary Fund had to bail out debt-laden Greece and then Ireland last year.

But despite those concerns, he said, “the euro is still there.”

“Europe has had 60 years of peace and therefore we will never let the euro go or be destroyed. ... I speak as much for my German friends as I do for the French,” he said. (more)