Wednesday, August 17, 2011

Sarkozy and Merkel announced proposals to address the crisis of the euro

After the Franco-German summit on the crisis of debt in Europe, French President Nicolas Sarkozy and German Chancellor Angela Merkel called for new measures of fiscal convergence between European states. A government of the euro area. France and Germany will propose to create an "economic government of the euro area".

Consists of the Council of Heads of State and Government, would meet twice a year, headed by a permanent president, elected for two and a half years. The name of Herman Van Rompuy, the current European Council President, has been suggested to chair the new body. A tax on financial transactions.

"The finance ministers of German and French will lay on the table of European authorities a joint proposal of tax on financial transactions in the month of September," said Sarkozy. The two leaders did not specify the terms of this measure. One option, popularized by economist James Tobin, is to tax at a very low rate and international capital flows.

The adoption of a "golden rule". France and Germany will propose that the 17 member countries adopted the euro area before the summer of 2012, the golden rule of balancing the budget, to enroll in the constitutions the goal of deficit reduction. The Prime Minister, Fran├žois Fillon, will take the "necessary contacts" with the various French political forces to see if a consensus is possible for faireadopter this golden rule, said Nicolas Sarkozy.

The two countries will finally examine early 2012, the idea of a common tax in its base and its rates, the two countries. Nicolas Sarkozy and Angela Merkel, however, categorically ruled out resorting to the creation of European bonds that would pool the debts of States.

"Currently, we do not Eurobonds as the best solution," said German Chancellor. "The eurobonds could be imagined at the end of the European integration process, not at the beginning," confirmed the French president. Nicolas Sarkozy has estimated that their early introduction could endanger stable countries.

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