The leaders of the two biggest economies in the European Union, Germany's chancellor Angela Merkel and the French president Nicholas Sarkozy think that the eurozone should have its own 'true, European economic Government'. The two met yesterday in Paris to talk about the situation of the eurozone. The German and French heads of state agreed that countries in the eurozone should have balanced budgets and coordinated economic policies.

The eagerly – awaited meeting between the two did not result in an announcement of a single European bond, as many commentators had been expecting. Instead, both leaders pledged to defend the single European currency. The new Governmental body proposed by the two for the eurozone should be made of heads of the states in the euro zone and should meet twice a year, even more frequently in times of crisis, and be led initially by EU President Herman Van Rompuy for a two-year term. After that, heads of states could take terms in leading the new body.

"We will regain the lost confidence," said Angela Merkel. "That is why we go into a phase with a new quality of cooperation within the eurozone," she added.

editor@romania-insider.com

(photo source: the French Presidency)