Merkel hails new eurozone treaty progress

Report of a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy, Berlin, 9 January 2012, which focused on finding ways forward to resolve the eurozone debt crisis.

Negotiations on a new European treaty to reinforce budget discipline in the eurozone are making rapid progress and there is 'a good chance' of reaching agreement by the end of January 2012, according to Chancellor Merkel. The 'fiscal compact' could then be signed by 1 March 2012.

At the same time, the two leaders called for a new push to revive economic growth and job creation in the eurozone, as the 'second pillar' of a strategy to stabilise the European currency union.

The treaty was being negotiated by 26 of the 27 members of the European Union – excluding the UK – although it would only bind the 17 eurozone members.

France24, 9.1.12: Europe needs to focus on growth, say Sarkozy, Merkel http://www.france24.com/en/20120109-eurozone-merkel-sarkozy-france-germany-tobin-tax-financial-crisis

ESO: Background information: France to push for financial tax at Berlin meeting http://www.europeansources.info/record/france-to-push-for-financial-tax-at-berlin-meeting/

BBC News, 9.1.12: Greece debt: Merkel urges deal soon on second bailout http://www.bbc.co.uk/news/business-16466135

ESO: Background information: More power for EU commission in new draft of fiscal treaty http://www.europeansources.info/record/more-power-for-eu-commission-in-new-draft-of-fiscal-treaty/

EUObserver, 9.1.12: Merkel urges Greece to implement debt deal http://euobserver.com/19/114805

Deutsche Welle, 9.1.12: Merkel, Sarkozy kick off year of eurozone wrangling http://www.dw-world.de/dw/article/0,,15653594,00.html

Spiegel Online International, 9.1.12: Merkozy Upbeat Despite Return of Euro Crisis http://www.spiegel.de/international/europe/0,1518,808039,00.html

---