'Merkel and Sarkozy Are Viewed with Suspicion'

Spiegel
November 25, 2011

The leaders of France, Germany and Italy were keen to present a show of unity at their Thursday summit in a bid to convince markets that the euro zone is in safe hands. But tensions lay below the surface, with Angela Merkel's continued opposition to euro bonds and a greater role for the ECB. Europe needs a strong Franco-German duo more than ever, argue German commentators.

France and Germany have long formed the famous "motor" of the European Union, but seldom has it been so important for their leaders to show unity as now, at the height of the euro crisis. The negative impact of a number of high-profile differences of opinion on how best to fight the crisis has made it clear to German Chancellor Angela Merkel and French President Nicolas Sarkozy that they need to appear to be on the same page in order to avoid unsettling financial markets even more.

And now that Italy has a new, more reliable leader, the euro zone's leadership duo looks set to become a trio. At a summit in the French city of Strasbourg on Thursday, Merkel and Sarkozy made a deliberate show of unity with new Italian Prime Minister Mario Monti. The three leaders held hands at a photo op, as if to show how united they are.

Merkel and Sarkozy clearly want to get Monti, as leader of the third-largest euro-zone economy, on board. The two leaders' exasperation with his predecessor, Silvio Berlusconi, was all too apparent in recent months. Hopes are high that Monti and his technocrat government will be able to steer Italy out of the euro crisis.

But, on Thursday, it was clear who was calling the shots. Monti presented his economic program to Merkel and Sarkozy, creating the impression that he needed to get the Franco-German duo to approve his plans.

Similarly, it was Merkel and Sarkozy who announced after the meeting that they want to propose modifications to the EU treaties. The changes, Sarkozy said, would "improve euro-zone confidence" and lead to "more integration and convergence." The leaders did not specify what those changes would be, but Sarkozy said that Germany and France would present its proposal in the coming days.

Observers are speculating that European leaders could agree on reforming the treaties at the next European Council summit in December. A so-called European convention could then be called at the beginning of next year and start work on drafting a new treaty. The summit was originally scheduled for Friday Dec. 9, but it will now be extended to two days, starting on Dec. 8, diplomats revealed earlier this week, prompting speculation that big decisions are afoot.

Merkel said that the euro-zone countries needed to go further along the road to a fiscal union in order to avoid future crises. National governments had to more closely coordinate their policies in order to have "a common stable currency," she said.

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