Danger, danger: Merkozy tape bombs exploding on Monday afternoon.
They have a deal!
(emphasis ours)
RTRS-FRANCE’S SARKOZY SAYS THE FRANCO-GERMAN AGREEMENT IS COMPLETE, WILL BE SENT TO VAN ROMPUY ON WEDNESDAY
RTRS-SARKOZY SAYS FRANCO-GERMAN PROPOSAL WILL MEAN MODIFIED EU TREATY, IDEALLY FOR ALL 27 EU MEMBERS
RTRS-SARKOZY SAYS PROPOSAL COULD ALSO MEAN A TREATY FOR 17 EURO ZONE MEMBERS, OPEN TO OTHERS
RTRS-SARKOZY SAYS PARIS, BERLIN WANT AUTOMATIC SANCTIONS FOR FAILING TO MEET 3 PCT DEFICIT RULE
RTRS-SARKOZY SAYS PARIS, BERLIN WANT A BUDGET-BALANCING RULE ACROSS THE EURO ZONE
RTRS-SARKOZY SAYS PARIS, BERLIN WANT ESM TO BE BROUGHT FORWARD TO 2012
RTRS-SARKOZY SAYS PARIS, BERLIN AGREE THAT EURO BONDS ARE IN NO WAY A SOLUTION TO THE CRISIS
Looks like Angela has pretty much got everything she wanted.
RTRS-MERKEL SAYS NEED STRUCTURAL CHANGES WITH TREATY CHANGES OF BINDING DEBT BRAKES
RTRS-MERKEL SAYS TREATY CHANGE FOR 27 WOULD BE MOST LOGICAL BUT CAN BE WITH JUST17 IF NECESSARY
RTRS-MERKEL SAYS EUROPEAN COURT OF JUSTICE SHOULD BE ABLE TO JUDGE WHETHER DEBT BRAKE IS SUFFICIENTLY IMPLEMENTED IN NATIONAL LAW
RTRS-MERKEL SAYS EUROPEAN COURT OF JUSTICE WILL NOT OVERSEE NATIONAL BUDGETS
Now comes the difficult bit, getting the rest of the eurozone to agree.
And what, we wonder, will the ECB make of the deal.
Is this another Eurofudge or something more substantive? These tape bombs are revealing.
RTRS-SARKOZY SAYS PARIS, BERLIN AGREE THAT EU COURT CANNOT OVERRULE NATIONAL BUDGETS
RTRS-SARKOZY SAYS EU COURT CAN DECIDE IF NATIONAL FISCAL RULES COMPLY WITH TERMS OF NEW EU TREATY
Related links:
Sarkozy reluctant to cede key powers – FT
France and Germany look set to fudge it yet again – FT
What ECB QE could look like – FT Alphaville