Monday, January 9, 2012

Sarkozy And Merkel Hold Talks On EU Rules

The leaders of France and Germany meet in Berlin today to kickstart a rescue plan for the euro.

It is the first in a series of monthly mini-summits between Angela Merkel and Nicolas Sarkozy, who want toughen up the rules governing countries which use the single currency.

Those proposals will be included in a so-called "fiscal compact" which is expected to be signed in March by all the EU member states except the UK, which walked away from the negotiations.

David Cameron pulled out after his attempt to secure safeguards for Britain's burgeoning financial service industry was rebuffed.

The draft pact, which has been obtained by Sky News, proposes using the European Court of Justice (ECJ) to ensure eurozone countries keep their national debt and budget deficits within agreed limits.

As the ECJ is an institution of the EU, all 27 members, including Britain, would have to agree to the plan.

The Prime Minister has hinted he might not support the proposal.
The mini-summit will also examine the introduction of a financial transaction tax, which Britain also strongly opposes. Read More