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Merkel, Sarkozy propose changes to EU Treaties

The proposals are expected to be outlined at the next EU leaders’ summit and concern stronger political cooperation in the eurozone.

Sarkozy and Merkel meeting in Strasbourg today.
Sarkozy and Merkel meeting in Strasbourg today.
Image: AP Photo/Michael Probst

ANGELA MERKEL and Nicolas Sarkozy have announced plans to propose a number of changes to the EU Treaties as part of continuing efforts to tackle the eurozone debt crisis.

The German and French leaders were meeting with new Italian PM Mario Monti today, and said the proposals concern “the question of a fiscal union, a deeper political cooperation”.

Treaty changes would, Merkel said, “make clear that we must take steps toward a fiscal union to express the conviction that we know policies must be more closely coordinated if you have a common, stable currency.”

However, Merkel denied suggesting any changes to the ECB.

Sarkozy said the proposals would be prepared in time for the next EU summit on 9 December.

The three EU leaders today agreed that current measures are not stringent enough to ward off future problems and need to be strengthened to prevent any repeat of the current crisis.

Meanwhile, Merkel today re-emphasised her opposition to the European Commission-supported proposal for euro bonds, or Stability Bonds, saying: “It would be completely the wrong signal to lose sight entirely now of these differing interest rates, because they are a pointer to where something still needs to be done and where we need to go further.”

Germany fears its low borrowing costs would rise if the eurozone issued joint bonds to raise funds.

- Additional reporting by the AP

Read: Euro bond plan includes giving EU ‘extensive intrusive power’ >

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