Sarkozy, Merkel outline euro zone master plan

[dipsydoodle]

Source: Reuters / Yahoo

PARIS (Reuters) - Following are highlights of a news conference by French President Nicolas Sarkozy and German Chancellor Angela Merkel following bilateral talks in Paris to hone joint proposals for more central control of euro zone budgets.

PRESIDENT NICOLAS SARKOZY

"The Franco-German agreement is very complete. It will be written up in a letter and presented to (European Council President) Herman Van Rompuy on Wednesday.

"We want to make sure that the imbalances which led to the situation in the euro zone today cannot happen again."

"Things cannot continue as they have done up until today. Our preference is for a treaty among the 27 (EU members), so that nobody feels excluded, but we are open to a treaty among the 17 (euro members), open to any state that wants to join us.

Read more: http://news.yahoo.com/highlights-sarkozy-merkel-outline-euro-zone-master-plan-144031323.html

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NB Above is following their meeting : not in anticipation of.

Sarkozy: France, Germany Want ‘New Treaty’

France and Germany want a new European Union treaty to set out rules form euro area governments, President Nicolas Sarkozy said after meeting with Chancellor Angela Merkel.

“We want it to be impossible for the deregulation that led to the euro zone’s current situation to recurr any case, we want a new treaty,” Sarkozy said in Paris. “Our preference is for a treaty of 27 but we’re perfectly ready to have a treaty of 17.”

http://www.bloomberg.com/news/2011-12-05/sarkozy-france-germany-want-new-treaty-.html

Sarkozy says eurobonds not a solution to crisis.

PARIS (AP) -- French President Nicolas Sarkozy says a jointly issued bond by all the countries that use the euro is not the solution to the continent's debt crisis.

Many analysts have said that only by issuing bonds backed by the whole eurozone will Europe be able to save its shared currency.

Stronger countries, like Germany and France, have resisted those calls, but some thought that as the crisis worsens they might be forced to relent. Sarkozy reiterated Monday, however, that a common bond was "in no way" the solution to the crisis.

He spoke after a meeting with German Chancellor Angela Merkel at the start of a crucial week for the eurozone. Markets cheered their comments, with the euro and stocks and bond yields edging lower.

http://hosted.ap.org/dynamic/stories/E/EU_EUROPE_FINANCIAL_CRISIS?SITE=CAANG&SECTION=HOME&TEMPLATE=DEFAULT

Eurozone: France and Germany call for tougher Europe treaty.

The leaders of France and Germany say the EU needs a revised treaty to deal with the eurozone debt crisis.

The statement from French President Nicolas Sarkozy and German Chancellor Angela Merkel came after they held crisis talks in Paris.

They said eurozone states should face greater checks on their budgets and face sanctions for running up deficits.

http://www.bbc.co.uk/news/world-europe-16037425

[xchrom]

1. recommend

[DallasNE]

2. Merkel And Sarkozy Don't Seem To Understand

The problem Europe faces if they think budget deficits are the primary source of the credit problem in Europe. They're not and they should know that. The problem is weak regulation that allowed toxic sub-prime loans bundled in derivative packages backed by an AAA rating. While there could be some merit to tighter controls over the budget process it is not a solution to the current problem and they should not be muddying the water in this shameful manner. This is a banking problem, not a budget problem.