Sarkozy and Merkel Call For European Union Treaty

06.12.2011 [16:06]
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Baku, December 6 (AZERTAC). The leaders of France and Germany called forcefully Monday for a new European Union treaty that would automatically punish countries that use the euro if they violate existing limits on overspending.

Stocks and the euro rose while European government bond yields dropped sharply as investors viewed the proposal for a closer fiscal union among the 17 countries as an important step to save the euro.

Implementing treaty changes could take months, but a commitment to tighter coordination could open the way for further emergency aid from the European Central Bank, the International Monetary Fund or some combination.

"Our wish is to go on a forced march toward re-establishing confidence in the eurozone," French President Nicolas Sarkozy said at a press conference alongside German Chancellor Angela Merkel. "We don`t

have time. We are conscious of the gravity of the situation and of the responsibility that rests on our shoulders."

Sarkozy and Merkel Call For European Union Treaty

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