IMF chief meets Sarkozy over euro debt

General Director of the International Monetary Fund Christine Lagarde arrived Saturday noon at the Elysee Palace for a talk with French President Nicolas Sarkozy over the European debt issue. The IMF chief's visit was on the eve of Sarkozy's departure to Berlin where he is expected to meet with German Chancellor Angela Merkel over the new bailout plan for Greece. According to local reports, the discussion between Lagarde and Sarkozy will also focus on the preparation of the G20 Summit next month in Cannes, which evidently has the eurozone debt problem on top agenda. European leaders and international organizations involved in the bailout package of debt-ridden eurozone members have intensified their meeting at a time that financial market remains volatile, European banks face recapitalization pressure and more difficulties emerged for Greece and other eurozone members. Greece announced it would miss the budget deficit targets for two years set by loaners of the European Union and the IMF. Early Saturday, Fitch Ratings downgraded Italy and Spain while Moody's Investors Service put Belgium on review for a possible cut.