EU leaders wrestle over revamped rescue fund / Berlin nears deal on eurozone governance

Article reports that EU leaders were negotiating a 'grand bargain' in late January 2011 to tackle the continent’s debt crisis that would overhaul the eurozone’s €440bn rescue fund in exchange for tough austerity measures and closer oversight of debt-burdened member states. Further discussion on these issues would be at the European Council, Brussels, 4 February 2011.

The 'pact for competitiveness', was not part of the official agenda but was high on the priority list of EU member states that share the euro. The plan put forward by France and Germany called for closer coordination of national economic plans among the 17 eurozone member states, to avoid the big economic imbalances that have separated many of them in recent years.

ESO: Background information: Euro zone starts talks on long-term crisis plan http://www.europeansources.info/record/euro-zone-starts-talks-on-long-term-crisis-plan/

ESO: Background information: Merkel Pushes Ahead with Economic Government Plans http://www.europeansources.info/record/merkel-pushes-ahead-with-economic-government-plans/

Deutsche Welle, 3.2.11: Merkel, Sarkozy to push 'competiveness pact' at Brussels summit http://www.dw-world.de/dw/article/0,,14816108,00.html

EUObserver, 3.2.11: Franco-German pact proposes 'hair-shirt union' http://euobserver.com/9/31748

EurActiv, 3.2.11: France and Germany to present 'fiscal union' plans http://www.euractiv.com/en/euro-finance/france-germany-present-fiscal-union-plans-news-501879

EurActiv, 31.1.11: Europe may hold early euro summit in March http://www.euractiv.com/euro-finance/europe-may-hold-early-euro-summi-news-501728

---