French & German Plans To Strengthen Euro Meet Opposition
Germany & France Announce Proposals Aimed At Strengthening The Euro
Europe’s leading economic powers, Germany and France have seen their proposal for increased collaboration of economies and tax coordination amongst euro-zone members meet with considerable resistance as German Chancellor Angela Merkel and French President Nicolas Sarkozy attempt to strengthen the euro and reduce Europe’s debt crisis.
At a European Summit on Friday both Mrs. Merkel and Mr. Sarkozy had to revise their proposal for a “pact for competitiveness”. Another meeting has been scheduled in March to try and resolve the current economic management disagreement that is present amongst the euro-zone countries.
EU President, Herman Van Rompuy said after the conclusion of the meeting in Brussels “We discussed it not in depth.There was certainly not a proposal by France and Germany, a concrete proposal.”
Currently Germany is looking to have more of the European economic decisions made by the members themselves which includes how best to use the full 440 billion euro rescue package, Mrs. Merkel advocating that the rescue fund would be more effective if it were more flexible. The fund currently can only lend around 250 billion euros due to rules associated with its AAA credit rating. Germany are also opposed to advocating buybacks, allowing countries to buy their own bonds, which effectively would see Germany have to inject more cash into the rescue fund.
Angela Merkel said in Brussels “The year 2010 was a year of trials for the euro.Germany and France are firmly committed that 2011 will be the year of new confidence for the euro.”
