European leaders began wrestling this evening over how much of their sovereignty they are willing to give up in a desperate attempt to save the euro. At stake in the two-day summit in Brussels is not only the future of the currency, but also the stability of the global financial system and the balance of power in Europe. To convince financial markets that Europe's debt crisis is a one-time event, countries will have to give up significant powers, such as some decisions on borrowing and spending, to a central authority.
French President Nicolas Sarkozy and German Chancellor Angela Merkel want to convince the other 15 eurozone leaders to agree to a plan that would require their governments to balance their budgets and accept automatic sanctions if they don't. "All the world is watching us," said Jose Barroso, president of the European Commission, according to CNN. "And what the world awaits from us is not more national problems but European solutions." Failure to come through could roil world markets tomorrow.