''YOU WILL DESTROY THE EURO''

"You're going to destroy the euro," Mr. Trichet shouted, in French, to the French delegation, according to people present.

Euro-zone government bonds had long been considered one of the world's safest investments: There was thought to be little risk a member state would default. But now, European leaders were about to enshrine in their laws the possibility of just such a default. That, the ECB knew, risked undercutting the bond market on which members of the monetary union depended.

When Europe's leaders gathered for a pre-summit dinner 10 days later, Mr. Trichet was still angry.

"You don't realize how serious the situation is," he told Mr. Sarkozy.

"Maybe you're talking to bankers," Mr. Sarkozy snapped back. "We are responsible to citizens." 

The WALL STREET JOURNAL