(Image Source: euronews)
BY: KYLIE MCGIVERN
You're watching multsource world news analysis from Newsy.
French president Nicolas Sarkozy and German chancellor Angela Merkel met to address the euro zone debt crisis Tuesday. And, as analysts expected, the meeting lived down to its expectations.
PBS has Sarkozy’s statements -- on proposals coming out of the summit.
NICOLAS SARKOZY, PRESIDENT OF FRANCE: “The first proposal we made is to create within the euro zone, a true European economic government. This economic government will be made up of the council of the heads of state and the government. It will meet twice a year and more if necessary, and it will elect a stable president for 2 ½ years.”
REPORTER: “The French and German leaders also proposed that euro nations have mandatory balanced budgets. And, they promised to coordinate corporate tax policy.”
The proposals attempt to solve Europe’s debt crisis -- a result of weaker EU members basically, unable to pay their bills.They either borrowed too much, side-steped rules, or didn’t collect enough revenue, to name a few.
CNN has more.
“The European financial crisis is intensifying. And that's why some experts are calling for new bonds denominated in euros. The hope is that a shared debt security could help lower the borrowing costs.”
France and Germany’s leaders claim they’re not engaging in euro-bond talks because it’s not a short-term solution. But financial analysts call bonds-- the only real rope to pull Europe out of its crisis.
Euronews reports.
“Expectations are fading for any kind of breakthrough from a Franco-Germany Emergency Summit on the euro zone debt crisis. Chancellor Angela Merkel and President Nicolas Sarkozy will NOT discuss the creation of a euro bond, seen by many in the financial world as the best way to help debt-saddled Greece, and other struggling euro zone members recover, by being able to borrow at more affordable rates.”
Tuesday’s figures showed Germany’s economy crawling in the second quarter, growing just 0.1 percent -- and The New York Times reports -- France’s economy has stalled as well.
“That means the two pillars of the European economy may be less willing and able to prop up their weaker counterparts, analysts warned... And the most ambitious idea — that all euro zone states legally bind themselves to working toward balanced budgets and reduced sovereign debt — is unlikely to be accepted by all member states.”
Finally, a TIME blogger writes -- responsibility for Europe’s economy shouldn’t all rest on Germany’s shoulders.
“The real risk to Europe isn't whether Germany can grow; it's whether the union can stay intact and convince the world this kind of crisis won't reoccur... Unfortunately, the Franco-German proposals out today lacked needed details on measures like these to soothe jittery global markets.”
Follow @Newsy_Videos on Twitter
Get more multisource video news analysis from Newsy
Transcript by Newsy
