Franco-German clash fears recede

Fears of a head-on clash between France’s new president and the German chancellor over the fiscal treaty retreated as concerns grew for the future of Greece in the eurozone.

Ireland does not want to be caught in the middle with a referendum on one version of the treaty, and a revised edition being battled over in Brussels.

But Germany’s Angela Merkel took some of the heat out of the situation yesterday saying she would welcome president-elect François Hollande “with open arms” when he comes to Berlin next week.