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Franco-German call for short selling ban

Franco-German call for short selling ban
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The European Commission has welcomed calls from Germany and France for new measures to clamp down on speculators in government debt.

Chancellor Angela Merkel and French President Nicolas Sarkozy have urged Brussels to consider an EU-wide ban on short selling of shares and sovereign bonds – that is betting that their value will fall.

Speculators have been blamed for worsening the euro crisis.

A Commission spokeswoman welcomed the “sense of urgency” expressed in the Franco-German letter, but stopped short of promising to copy Germany’s ban on the short-selling of some shares, government bonds and related derivatives.