Piece by M.Jordan
Date: Monday 05 Dec 2011
As we gear up for the December 9th EU summit, which is to focus on proposals to move euro area countries further towards closer economic and fiscal union, the German Chancellor Angela Merkel and the French President Nicolas Sarkozy will kick off the week of high profile meetings today at 12:30PM London time (13:30 CET) with a press conference expected to be held afterwards.
After presenting their views last week, these two leaders -often dubbed “Merkozy”- are working to fine-tune their proposals for presentation to European Union leaders next Thursday in preparation for the summit the following day. The bone of contention between the two parties continues to be that while Merkel seeks other states surrendering budgetary control to a European authority with veto power, Sarkozy is under increasing pressure from constituents about handing French sovereignty over on a plate. Under discussion are such items as the role of the European Central Bank as a lender of last resort or how to implement sanctions against Eurozone countries that break deficit rules.
The experts at Barclay’s Capital are indicating that “there does appear to be a concerted attempt by France and Germany to achieve a tougher fiscal regime, including constitutional amendments at the country level to include ‘debt-break’ type rules and an element of central enforcement at the EU level.” But these analysts remain wary as they “expect no quantum leap towards a fiscal union or Eurobonds, but more likely enhanced cooperation at the intergovernmental level,” and insist that, in any case, “it remains to be seen in just what form this will be agreed, however, on Friday.”
After presenting their views last week, these two leaders -often dubbed “Merkozy”- are working to fine-tune their proposals for presentation to European Union leaders next Thursday in preparation for the summit the following day. The bone of contention between the two parties continues to be that while Merkel seeks other states surrendering budgetary control to a European authority with veto power, Sarkozy is under increasing pressure from constituents about handing French sovereignty over on a plate. Under discussion are such items as the role of the European Central Bank as a lender of last resort or how to implement sanctions against Eurozone countries that break deficit rules.
The experts at Barclay’s Capital are indicating that “there does appear to be a concerted attempt by France and Germany to achieve a tougher fiscal regime, including constitutional amendments at the country level to include ‘debt-break’ type rules and an element of central enforcement at the EU level.” But these analysts remain wary as they “expect no quantum leap towards a fiscal union or Eurobonds, but more likely enhanced cooperation at the intergovernmental level,” and insist that, in any case, “it remains to be seen in just what form this will be agreed, however, on Friday.”
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