Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

No strategy and a beige suit

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014

Read more

ENCORE!

Alain Choquette: A Hilarious Magician in Paris

Read more

FOCUS

France welcomes Iraqi Christian refugees

Read more

FRANCE IN FOCUS

Emmanuel Macron: A new economy minister with a pro-business agenda

Read more

THE OBSERVERS

More of this year's best Observers stories

Read more

#TECH 24

Changing the world, one video game at a time

Read more

IN THE PAPERS

Socialist Party summer conference kicks off in explosive atmosphere

Read more

  • Exclusive: Fabius warns of further sanctions against Russia

    Read more

  • Experimental Ebola drug ‘ZMapp’ heals all monkeys in study

    Read more

  • IMF stands behind Lagarde amid French corruption probe

    Read more

  • Ukraine to relaunch NATO membership bid

    Read more

  • Suriname leader’s son pleads guilty to courting Hezbollah

    Read more

  • British killer escapes from French psychiatric hospital

    Read more

  • Chelsea’s Torres set for AC Milan switch

    Read more

  • Police hunt for British boy with brain tumour taken to France

    Read more

  • France shines in IMF list of world’s promising economists

    Read more

  • Mapping Ukraine: Canada and Russia in ‘tweet for tat’ row

    Read more

  • First case of Ebola confirmed in Senegal

    Read more

  • Obama has 'no strategy yet' on potential Syria strikes

    Read more

  • Netflix to woo French with ‘House of Cards’ set in Marseille

    Read more

  • French businesses ‘hoping for a new Thatcher’

    Read more

  • Syrian refugees surpass 3 million, UN says

    Read more

  • West backs Ukrainian claims of Russian incursion

    Read more

  • Libyan PM resigns as Islamists set up rival administration

    Read more

  • UN says 43 peacekeepers captured in Golan Heights

    Read more

  • The deleted tweets of Manuel Valls

    Read more

  • Peru seizes record 6.5 tonnes of Europe-bound cocaine

    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)