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Sarkozy, Merkel Announce Plan to Save Euro

Meanwhile, Italy announces austerity measures

By Kevin Spak,  Newser Staff

Posted Dec 5, 2011 10:08 AM CST

(Newser) – Nicolas Sarkozy and Angela Merkel sat down for a working lunch in Paris today, and emerged with a joint statement calling for big changes to the euro zone’s governing treaties aimed at preventing future crises. Their vision includes a new European monetary fund, zone-wide deficit limits, and automatic penalties for any country that exceeds those limits, the New York Times reports. “We want to make sure that the imbalances that led to the situation in the euro zone today cannot happen again,” Sarkozy said.

Sarkozy and Merkel will present their plan to a meeting of all the European Union leaders in Brussels on Thursday—a meeting many are seeing as the last chance to save the euro. “The survival of the euro zone is in play,” said one official. “So far it’s been too little, too late.” Meanwhile, new Italian Prime Minister Mario Monti unveiled a roughly $40 billion austerity plan that includes tax hikes and pension reforms, along with various growth incentives, Reuters reports.
Nicolas Sarkozy welcomes Angela Merkel prior to a working lunch at the Elysee Palace in Paris on December 5, 2011 to thrash out details of a plan to save the euro.
Nicolas Sarkozy welcomes Angela Merkel prior to a working lunch at the Elysee Palace in Paris on December 5, 2011 to thrash out details of a plan to save the euro.   (Getty Images)
French President Nicolas Sarkozy, left, smiles as he greets German Chancellor Angela Merkel prior to their meeting at the Elysee Palace in Paris, Monday Dec. 5, 2011.
French President Nicolas Sarkozy, left, smiles as he greets German Chancellor Angela Merkel prior to their meeting at the Elysee Palace in Paris, Monday Dec. 5, 2011.   (AP Photo/Remy de la Mauviniere)
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COMMENTS
Showing 3 of 7 comments
brucke
Dec 5, 2011 1:29 PM CST
It was a project that was pushed through way too soon. To have a single currency and yet let indvidual states determine their own tax rates is dangerous. Political union was too slow and I think Europhiles wanted to speed that up through closer economic union. There is much feeling in Europe that the unity has been forced and does not reflect the feelings of Europeans. They are trying to do everything too fast. It's a power grab - the economic power of the EU combined makes it a more powerful economy than the USA or China.
TopsyKrets
Dec 5, 2011 11:23 AM CST
You have to wonder who the Euro was ever designed to benefit? Doubtfully the people of Europe - look at all the austerity being imposed on them. I'd wager it was the bankers' scheme - after all, the more debt they own, the richer they become.
Deleted
Dec 5, 2011 11:23 AM CST
From CNN Money: "In what is seen as a concession by Sarkozy, the pact includes automatic sanctions for member states that fail to keep budget deficits under 3% of gross domestic product." So does it bother absolutely anyone that U.S. budget deficits are over 8% of GDP for as far as the eye can see?  Our government is destroying this country. P.S. Declaring it and doing it are two different things.
World • Money

 
Angela Merkel • European Union • Nicolas Sarkozy • euro • eurozone • Mario Monti

 
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