German Chancellor Angela Merkel and French President Nicolas Sarkozy said they will encourage euro-zone nations to more closely integrate their economies, proposing stricter oversight and deficit rules to tackle the sovereign-debt crisis. The leaders rejected the idea of expanding the region's rescue fund or introducing eurobonds. Instead they proposed establishing a "euro council" as part of an "economic government" for Europe. "It's very obvious that in order for this to work, we need a stronger convergence in finance and economic policy within the euro zone, and Germany and France are at the vanguard of that effort," Merkel said.

Related Summaries