France is US’s ‘strongest ally’

AMERICAN president Barack Obama told President Sarkozy yesterday: “We don’t have a stronger friend and a stronger ally than Nicolas Sarkozy and the French people.”

The two leaders expressed mutual support as they met in Washington to discuss priorities for the year ahead as France takes up the presidency of the G20 and G8 groups of leading economic powers this year.

Sarkozy broached his ideas on international monetary reform, which are a sensitive issue in America. He believes that the dollar being the only global reserve currency does not reflect the modern world, with rising economies like China and Russia playing an increasingly important role. However he insisted before the meeting: “I know how important a role the US plays in the world, how important the US dollar is as the world’s number one currency.”

A French official said after the meeting that the G20 should discuss ways other currencies could also become reserve ones; however, an American spokesman said Mr Sarkozy made it clear he did not want to reduce the value of the dollar.

President Sarkozy has said he will use his presidency of the G20 to gather ideas on monetary reform before putting it on the agenda at a meeting in Cannes in November.

He said in Washington: “With Barack Obama, we will be putting forward new ideas at the G20 as well as the G8. Our teams are going to work hard together to come up with common proposals on the big issues like currencies and prices of raw materials so as to reduce worldwide imbalances.”

He wants to “work hand in hand” with the USA to find ideas that will “bring prosperity and stability to the world,” he added.

The leaders also discussed the Middle East peace process, Iran, Afghanistan and the troubles in Ivory Coast as well as terrorism. Regarding terrorism, Mr Sarkozy said: “The USA and France are determined to be allies on this. We would be deeply guilty if we show weakness and we have no choice but to fight terrorists wherever they are. The democracies cannot back down.”