Angela Merkel and Nicolas Sarkozy have proposed a new EU-treaty aimed at solving the euro zone debt crisis.
Following a working lunch in Paris they said that things cannot continue as they are. As the two largest euro zone economies, Germany and France, will now lead the way in monthly meetings until the crisis is solved. They said they hope for agreement from all 27 members, however they will happily go ahead with backing for fewer.
French President, Nicolas Sarkozy said: “We want a new treaty to make all the people of Europe – EU and euro zone – realise things cannot continue the same way as they have been until now. We prefer to have 27 signatories so that nobody feels excluded from a French-German initiative, but we’re ready to go ahead with 17 members or with any state that wants to join us”
German Chancellor, Angela Merkel added: “We are against Eurobonds. And there will be a meeting every month of the Eurogroup and all those who are interested, to increase our competitiveness and to boost the economy.”
The announcement kicks off a week of meetings involving European leaders, the European Central Bank, and the US Treasury Secretary. This will culminate in an EU summit on Friday which is seen as crucial for the survival of the single European currency.