Chancellor Angela Merkel insisted yesterday that the euro could only be saved by changes in the EU treaty to impose legally enforceable budget discipline on countries using the single currency.
Her words, in a landmark speech to the Bundestag, implied exactly the kind of federalist solution, over-riding national sovereignty, which was rejected the day before by President Nicolas Sarkozy. Efforts will be made to resolve the apparent gulf between the two leaders when they meet in Paris on Monday to agree draft treaty changes to place before a critical EU summit in Brussels on Thursday and Friday.
