Above all calm the markets

Oh well, we can all go home - the world has been saved!

Angela Merkel and Nicolas Sarkozy meet in Paris for summit on fiscal union

Centralised control over tax-and-spend policy for the 17 member countries could calm the markets and save the euro

the Guardian,

3 December, 2011

Angela Merkel and Nicolas Sarkozy, the German chancellor and French president, will meet in Paris on Monday to thrash out a deal on fiscal union that they hope will bring long-term stability to the currency zone. The blueprint will be presented to other European leaders at a Brussels summit at the end of the week.

Financial markets are also expecting an interest rate cut from the European Central Bank on Thursday to give floundering euro economies a much-needed shot in the arm.

After months of deepening gloom that saw the eurozone lurch closer to recession and potential disintegration, a hint of optimism is in the air. There is a feeling in European capitals that moves to transform the currency union into a fiscal union, with greater centralised control over the tax-and-spend policies of the 17 member countries, could be the beginning of a solution for the debt crisis and calm the markets.

For article GO HERE