Sarkozy and Merkel Face Off

French president could be be key to European constitution

(NEWSER) - Hours after Nicolas Sarkozy became president of France, both Germany and Britain began wooing him—Germany to win his support for a European constitution, Britain to secure his opposition to it. Sarkozy immediately huddled with Angela Merkel, the German chancellor who has been lobbying hold-outs with one-on-one talks, the London Times reports. More»

At odds with Germany over ECB, deflation, budget enforcement

(NEWSER) - French President Nicolas Sarkozy yesterday called for changing the eurozone treaty to make a tighter, stronger union, and demanded more budget discipline, increased help for foundering economies, and replacing countries' veto rights with qualified majorities, reports Reuters . He also called for the European Central Bank to be more interventionist and fight possible deflation. "Let us not hide it, Europe may be swept away by the crisis if it doesn't get a grip, if it doesn't change," he warned. "We don't have the right to let such a disaster happen." More»

Belgian division to be nationalized; Belgium, France offer guarantees

(NEWSER) - Leading Franco-Belgian bank Dexia has agreed to a government rescue plan—making it "the biggest euro zone bank failure in quite some time," one analyst tells the New York Times . The plan will nationalize Dexia's Belgian banking division in a $5.4 billion government buyout; meanwhile, Belgium, France, and Luxembourg are providing the bank with $121 billion in guarantees, Reuters reports. Belgium will cover 60.5% of the guarantees, with France providing 36.5% and Luxembourg the rest. More»

(NEWSER) - Europeans may have longer lives and longer vacations, but red-blooded Americans don't want their socialist ways on this side of the ocean, right wing media mouths are eager to remind everyone, MIchael Freedman writes in Newsweek. Underlying much of the opposition to health care reform is the fear that it's part of an anti-American conspiracy to transform the US into a "European social welfare state," according to Rush Limbaugh. More»

European leaders feel burned after visit by popular president

(NEWSER) - President Obama’s dizzying, 2-day jaunt through Europe left two people smarting in his dust: Nicolas Sarkozy and Angela Merkel. France’s president and Germany’s chancellor learned that Obama, not one to pal around with European leaders, keeps his distance. “Obama is not out to play buddy-buddy with Sarko or any other European leader,” Charles Bremner writes for the Times of London. More»