German Chancellor Angela Merkel and French President Nicolas Sarkozy took a pretty dramatic and united step forward today. They jointly pushed for a new European treaty that, if ratified, would alter the actually treaty that created the euro zone. It will create a system of budget cops to enforce automatic penalties onnations running deficits greater than 3 percent of their total budget. Consider yourself on notice, Greece, Portugal, Ireland, Italy, and Spain. Even though it’s still in the planning stages, the European Central Bank could lower interest rates when it meets Thursday.
German Chancellor Angela Merkel and French President Nicolas Sarkozy took a pretty dramatic and united step forward today. They jointly pushed for a new European treaty that, if ratified, would alter the actually treaty that created the euro zone. It will create a system of budget cops to enforce automatic penalties onnations running deficits greater than 3 percent of their total budget. Consider yourself on notice, Greece, Portugal, Ireland, Italy, and Spain. Even though it’s still in the planning stages, the European Central Bank could lower interest rates when it meets Thursday.
