Angela Merkel, the German chancellor, called for EU institutions to be given “more teeth” both to control speculation and to police the deficit spending of member states, while France’s François Fillon said after talks in Berlin that both governments were “very much in agreement in tackling extreme speculation”. The two have dispatched a letter to EU commission president José Manuel Barroso demanding an immediate investigation of the role and effect of speculative trading in CDSs on sovereign bonds.
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