The French president Nicolas Sarkozy and the German Chancellor Angela Merkel proposed the suspension of structural funds of countries in the euro zone that are not cutting back their deficits.
This Wednesday, Herman Van Rompuy, president of the European Union (EU) received a letter written by Sarkozy and Merkel. According to the document the structural funds must be used to support reforms that seek to improve the economic growth and the competitiveness in the euro zone.
The letter of both leaders called for each nation in the euro zone to use a “golden rule” in their national constitutions to work forward balanced budgets and debt reduction. They also pushed for a new tax on financial transactions and for regular summit meetings of the zone’s members under the leadership of Van Rompuy. (AV)