Updated with quote from German Chancellor Angela Merkel on recapitalization agreement.NEW YORK ( TheStreet) -- The leaders of France and Germany say they have reached an agreement on shoring up Europe's banking sector. German Chancellor Angela Merkel said she and French President Nicolas Sarkozy "are determined to do the necessary to ensure the recapitalization of Europe's banks," the Associated Press reported. The leaders of Europe's two largest economies met Sunday in Berlin to discuss ways to address the eurozone's sovereign debt crisis. They weren't forthcoming about the agreement's details, saying they must discuss it first with other European leaders, the AP reported. A summit meeting of European Union leaders is scheduled for Oct. 17-18 in Brussels. Sarkozy said Sunday it was "not the moment" to go into the details, but he added that the deal was "total," according to the AP. When Merkel was asked whether whether the agreement would lead to the recapitalization of all of Europe's banks, she did not answer the question directly, the AP added. Instead, she said that all banks would be measured according to the same criteria, which European leaders will establish along with institutions such as the International Monetary Fund.
|German Chancellor Angela Merkel and French President Nicolas Sarkozy arrive from a meeting about the financial crisis in Berlin on Sunday.|