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."
Unfortunately, Sarkozy's plans differ from Germany's proposals, which call for the ability to override countries' budgets and force cuts on them, but without any sort of transfers from rich to poor regions. While Sarkozy says discipline is needed, he made it clear that France is opposed to giving up control over its own budgets, unless it helps the European Central Bank act more like the lender of last resort for struggling Euro economies. "The reform of Europe is not a march toward supra-nationality," Sarkozy said. (Read more eurozone stories.)