While The New York Times says German Chancellor Angela Merkel and French President Nicolas Sarkozy are working on a deal to save the euro that has “several moving parts,” The Financial Times cautions that “officials on both sides have cautioned against expectations of an announcement of a detailed plan by the two.”
The FT adds that Merkozy (headline writers’ new favorite name for the two leaders) “may be the driving force in the 17-strong currency union, but the two are (more or less) sensitive to concerns among other members that they should not be dictated to by the big powers.”
Still, the Times says the deal, “as European and American officials describe it, is being negotiated along four main lines”:
— “New promises of fiscal discipline.”
— A larger bailout fund.
— More money from the International Monetary Fund “to augment the bailout fund.”
— “Quiet political cover for the European Central Bank to keep buying Italian and Spanish bonds aggressively in the interim.”
On the NPR Newscast this morning, Planet Money’s Zoe Chace said there’s also talk about something akin to “a whole new European Union” with “more centralized control over individual country’s budget” in order to prevent the kind of cascading crises that have plagued the union this year.
On Morning Edition, Eleanor Beardsley reported from Paris about how “Merkozy” have been preparing their nations for major changes in the EU.
Merkel and Sarkozy are meeting today in Paris. There’s an EU emergency summit in Brussels on Friday.