The presidents of the European Council and the EU Commission ruled nothing in or out at the conclusion of Sunday’s summit of political heads ahead of a gathering of the 17 leaders from the euro zone.
They will all be back around the table on Wednesday when concrete decisions are expected.
Herman von Rompuy, President of the European Council did not exclude treaty changes, particularly because the “government of the euro zone is on the table”. He went on to explain: “The reasoning is simple. It is normal that those who share a common currency must take some common decisions related to that currency. In fact one of the origins of the current crisis is that almost everybody has underestimated the extent to which the economies are linked,” he said.
Talks broke down last week between Berlin and France over the European Financial Stability Facility – a firewall working with the European Central Bank. Italy’s economy is now under scrutiny so other measures must be brought into play said the German Chancellor, Angela Merkel.
“A firewall alone will not ensure credibility, credibility also needs a clear perspective. Italy has big economic strength but Italy has also a very high level of sovereign debt and this needs to decrease in a credible way during the next years,” she stressed.
Our correspondent at the summit in Brussels said: “After their differences of opinion the German Chancellor and the French President this time showed unanimity. But Europe and the financial markets are waiting for decisions. The real decisions however will be taken only on Wednesday here in Brussels.”