Germany and France “set example” to euro zone

Germany and France have pledged to start harmonising their taxes as an example to Europe of how to avoid future economic crises.

At their brief summit in Freiburg near the border between the two countries, German Chancellor Angela Merkel and French President Nicolas Sarkozy also ruled out joint euro zone bonds or the idea of topping up the current euro zone crisis fund.

Merkel said closer fiscal harmony is the goal: “If we look back one year, then it would have been unthinkable that we had reached such a degree of solidarity, embodied by a future permanent crisis mechanism. That underlines our commitment for Europe.”

She said the euro would not be allowed to fail because it does “Europe fails” which is “very serious.”

Nicolas Sarkozy expressed similar sentiments: “Let’s be crystal clear: We are profoundly attached to the euro. We defend the euro, because the euro is Europe. And Europe is a part of the future of our countries.”

Looking ahead to next week’s summit of European Union leaders, the two said that that gathering has to agree a permanent crisis mechanism for the euro zone, which would require changes to the EU’s Lisbon treaty.

Merkel said it was important for the EU summit to “give a sign that we are defending the euro.”

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