Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Al-Shabaab kill 14 quarry workers in their sleep in Kenya

Read more

MEDIAWATCH

London bombings remembered

Read more

EYE ON AFRICA

East african bloc demands Burundian poll be delayed to June 30th

Read more

THE DEBATE

Iran Deal: Finishing Touches? Vienna talks continue past deadline

Read more

THE DEBATE

Time’s up for Greece: EU Leaders review last chance proposals

Read more

ENCORE!

Charlie Hebdo: Freedom of speech, six months on

Read more

FOCUS

Pakistan executions on the rise

Read more

IN THE PAPERS

'Life for British Muslims since 7/7'

Read more

IN THE PAPERS

Hollande and Merkel play good cop, bad cop on Greece

Read more

Europe

Sarkozy, Merkel propose reforms to save eurozone

Latest update : 2011-12-07

French president Nicolas Sarkozy and German Chancellor Angela Merkel submitted a letter to the European council proposing a renewed contract between eurozone member states, the French presidency said on Wednesday.

AFP - French President Nicolas Sarkozy and German Chancellor Angela Merkel have sent a letter to the European Council outlining their plan for saving the eurozone, the French presidency said Wednesday.

The letter, to council president Herman Van Rompuy, outlines proposals made to amend policies governing the eurozone, known collectively as the Economic and Monetary Union, after the two met Monday to reform eurozone governance and enforce budgetary discipline to tackle the debt crisis.

"We must significantly consolidate the foundations of the EMU," they said. "Along with a common currency, a solid economic pillar is indispensable, based on reinforced governance to ensure budget discipline as well as stronger growth and increased competitiveness," they said.

"To reach these goals, we need a renewed contract between eurozone member states."

The letter outlines proposals including monthly meetings of eurozone leaders during the crisis, the adoption of legal or constitutional limits on budget deficits and automatic sanctions for states whose deficits exceed three percent of GDP.

The letter said Paris and Berlin hope that all 27 European Union members would sign on to the new rules but if not, "states whose currency is the euro should move forward" on their own.

"We are convinced that we must act without delay," the letter said, adding that the articles of a new treaty should be ready by the end of next March.

The letter was released ahead of a crunch summit opening in Brussels on Thursday that is widely seen as the last chance to save the euro.

Date created : 2011-12-07

  • Greece

    Greek protesters stage 24-hour general strike

    Read more

  • Greece

    Greece's new government presents austerity budget

    Read more

  • GREECE

    Greek police fire teargas at anti-austerity protesters

    Read more

COMMENT(S)