Germany and France, said the euro zone behind to make their economies more competitive to help overcome the debt crisis, pledging to do everything necessary to defend the currency in a European Union summit next week .
the survival of the euro is "not negotiable", that require monitoring of the budget and closer economic cooperation to overcome the "structural weaknesses" in the euro region, Chancellor Angela Merkel and President Nicolas Sarkozy said today. Joint bond was discarded and rejected any increase in the size of the 440 million euros (583 billion) rescue fund established in May.
"If the euro, Europe," Merkel told reporters in the southwestern German city of Freiburg, calling for more economic "coherence" in the euro region. "We must find a way to bridge the gap of competitiveness," he said. "It's not a job for next Friday" at the summit of the EU, but for the future. "
The leaders of the two largest economies of Europe held a joint cabinet meeting, as they sought to form a common position before the December summit 16-17 that aims to stop the spread of the debt crisis. It is divided between EU governments on the way forward have already emerged, with Italy, Belgium and Luxembourg for euro area bonds and Germany opposed.
"Common ties that make governments less accountable, when we want to do otherwise," said Sarkozy. Both leaders also rejected any increase in the rescue fund created to contain the spread of Greece.
Noting that Germany and France are the two biggest contributors to the fund, Sarkozy said that "no one can accuse the two partners of selfishness."
Euro Drops
"We will do whatever necessary to defend the euro," he said.
The euro traded at 1.3212, up 0.0027 cents, at 3:37 pm in Berlin. The single currency has fallen 7.8 percent this year.
10-year bonds in Spain fell for the fifth consecutive day, while bond yields similar to Portuguese due rose 14 basis points to 4.63 percent. Irish yields added 12 basis points to 8.3 percent and the yield on the 10-year Belgian rose four basis points to 4 percent.
Merkel tried to focus on differences in competitiveness within the euro area. An index of export orders to German manufacturers rose in November, while similar indicators for Spain and Greece refused, according to figures from the EU Commission. The unemployment rate in the euro area rose to 10.1 percent in October, the highest since July 1998, German unemployment fell to a 18 - November iin year low.
"The problem is not just the deficit but there are structural weaknesses in our economies, so they have to be treated," said Merkel. Germany and France are "determined to put on the table," he said.
Both leaders said the election of a successor to Jean-Claude Trichet as president of the European Central Bank has not yet become a problem between them.
"We are not talking about the succession of the ECB because the issue is still not present," said Sarkozy.
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