Germany and France Agree Merkozy to Seek New EU Treaty to Tackle Crisis

Germany and France have agreed a common position on tackling the euro-zone debt crisis by pushing for a new EU treaty to enforce budget discipline through automatic sanctions. They plan to bring forward the permanent euro bailout mechanism to 2012 from 2013 -- and both remain opposed to euro bonds.
All smiles as French President Nicolas Sarkozy greeted German Chancellor Angela Merkel in Paris on Monday.

All smiles as French President Nicolas Sarkozy greeted German Chancellor Angela Merkel in Paris on Monday.

Foto: CHARLES PLATIAU/ REUTERS
cro -- with wire reports