"Berlin - Germany and France move up a gear! In record time, a new €-stability agreement will be enforced-as early as the beginning of next year! This should a calm down to the financial markets.
Yesterday Italy had to pay for two-year bonds 7.8% interests, a month earlier the figure was only 4.6% yet!
According to BILD informations Chancellor Angela Merkel and French President Nicolas Sarkozy even consider even to create the new Stability Pact initially as a contract between the national states - similar to the initial agreement on the abolition on personal borders within the EU ("Schengen Agreement"). The advantage is that it's faster and leaves less room for skeptical member states resistance. If necessary the EU Commission's opinion is not important to Merkel and Sarkozy.
Already at the next EU summit on 8 / 9 December the duo (nicknamed "Merkozy") will present its plans. Strong protest is expected from Great Britain is as they, although not part of the Euro-zone, want not to be pushed but towards the edge. (Nic.)" LINK