The World from Berlin Berlin's Quest for Tough Euro Zone Rules Has 'Failed Spectacularly'

Germany has caved in to France on the reform of the euro zone's Stability Pact by agreeing to jettison plans for automatic sanctions against countries that breach budget rules. The EU is in danger of breaking its promise to get its house in order in the wake of the Greek crisis, say German commentators.
German Chancellor Angela Merkel and French President, Nicolas Sarkozy at a summit on Monday in Deauville, France.

German Chancellor Angela Merkel and French President, Nicolas Sarkozy at a summit on Monday in Deauville, France.

Franck Fife/ AP
-- David Crossland