Historic, Bold Franco-German move : Merkel+Sarkozy for Higher+Deeper €uroZone Governance+Integration

*Paris, Elysee Palace/Angelo Marcopolo/- In an Historic and Bold move of EU's Franco-German motor, Sarkozy and Merkel decided today to create an €uroZone Top Political Governance, including, for the 1st time, regular Heads of State/Government €uro-Summits Twice each Year, with a unique President, and strong initial Measures such as the adoption, by all 17 €uroZone Member States, of the Legal Principle that their National Budgets must target return to Financial Equilibrium in some years, as well as a Tax on Financial Markets, etc., while France and Germany will spearhead deeper Integration by adopting the same Fiscal Rules for Corporations, by systematically coordinating closer their National Budgets, etc.

Even if the overall package includes also wider EU-27 Countries' developments, nevertheless, it's €uroZones-17 Countries' comparatively Faster, New Moves, spearheaded by advanced Franco-German Integration, which aim to open new Horizons. 

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+ "Historic" Summit ?

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Placing voluntarily their Strategy in a larger, Historic €uroZone and EU-World "Joint Analysis" for the present, and "joint Vision for the Future", Sarkozy and Merkel pointed at the Political importance of the move, expressing  "a total Will to defend €uro (Currency), and "assume France and Germany's particular Responsibilities in Europe", with "fully Identical Views and Proposals"  which are "Ambitious", as they both stressed, speaking to Journalists, including "EuroFora", at a well-attended Elysee Palace Press Conference :

+ "Germany and France are two Countries that Destiny and Geography placed side by side. It's about the 2 Bigger Economies of Europe. You (Germany) are our 1st Supplier and our 1st Client. General De Gaulle and Chancellor Adenauer reconciled us. Men like Valery Giscard d'Estaing and Chancellor Helmut Schmidt rapproched us. Men as François Mitterand and Helmut Kohl created the Common Currency".

=> Now, "I think that our aim, Today, for Mrs Merkel and myself, is to extend this Raprochement : It's crystal-clear that Major Countries as Germany and France must Converge. Status quo is impossible. Integration is the Key and our point of view. We thing that our Duty is to establish a Stable and Wide, Modern Franco-German Economic Area, where we'd progressively erase Disparities harmfull on both sides of the border, in order to create a Winning European Model, able to support our Values", Sarkozy stressed.  

- "For all Markets, World-wide, for the whole World which is watching what is going on Today", he added, (making an obvious reference to the Fact that almost all Global Media were pointing at this August 16th, 2011 Elysee Palace Franco-German Summit as the biggest Top News of the week !), "the fact that Germany and France have a Common Language, a Joint Vision and Common Perspectives, it's perhaps the Best element that we can give to Europe as a whole", he underlined.

Even if it's "not yet", "in the current state of affairs", possible to have ..."a common Minister of Economy for France and Germany", as a Journalist wondered, nevertheless, "it's possible to have a Joint Analysis, a Convergence while respecting Identities and Particularities". Because, even if "Germans and French are not the same : Each one has its qualities and sometimes weaknesses. But, Together we are Stronger !"- "If we, French People, had to inspire ourselves from a(n) (Economic) System, it's better to do that with a Winning System, than from a Losing System...When I came to Germany, I described the Consideration felt by the French for our German Friends' appetite to Work and for their Success. (Past) History had confronted us several times. (But) our Responsibility is to rapproach eachother, and I say to French People that they have nothing to fear in this raprochement : It's precisely because we'll succeed to Converge and Rapproach eachother, that we'll be able to keep both our Identity.

 - What is going to happen is extremely important", Sarkozy highlighted.

.................. 

- "EU was born at the War's aftermath, and what was at stake was Peace. Today, we are in a European Union which shares Values, groups 500 Millions of Citizens, facing New, Emerging Big Powers, in front of an evolving World, and, therefore, the question raised is to Defend our Interests, while respecting our Citizens", stressed Merkel.

- In the Past, "after the end of the 19th Century, since the beginning of the 20th Century, many things happened, and afterwards emerged the American Power. But who knows what will happen at the End of the (current) 21st Century ?", wondered the German Chancellor, (apparently pointing at a Future open to a possible European Renaissance, able to challenge Washington DC and speak as equal to equal)..

- "It's always an enrichement when France and Germany, with all their differencies, converge on Joint Ideas.. And it's always Exciting when we can discuss Together, because we Rapproach Ideas coming from Central, Eastern and more Mediterranean Europe. It's true that our Countries, by their Geographic position, raproach positions : This is Fruitful, and we naturaly must Share with the other Countries". "However, one thing is clear : That we won't sort it out alone, each one on his own, but we have much more Chances Together, and that's our Common Responsibility", she concluded.
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- "Our Will to put all €uroZone on track towards Growth is full and total, as well as our will to Fight against phenomena" of "Speculation and Rumours" which are added to "objective causes in the current situation", stressed Sarkozy from the outset.

- "Our proposals express  the German and French Governments' full Willingness to advance at a same pace in order to Defend the European Acquis, European Growh, and apply inside €uroZone a target aiming to strengthen our Economies' Competitiveness", he added.

Therefore, "France and Germany assume their Responsibilities, in a complicated and difficult (Global) context, as everybody can see". At the same time, it's clear that we are Advancing towards more Economic "Integration inside €uroZone" ; Sarkozy highlighted prospectively (See infra)/
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+ "We are crossing into a qualitively New Stage of Cooperation inside €uroZone", anounced also German Chancellor Angie Merkel, explaining the main reasons of the Franco-German move and the methods :

- Because "France and Germany feel obliged to Defend our Common Currency, the €uro". We want to "assume our Responsibilities and SpearHead €uro's defense", the German Chancellor stressed from the outset.

- "€uro is and remains our Future. It lies at the Foundations of our Prosperity, and it's also part of our Friendly and Peaceful CoExistance", she observed.

=>This "incites us to Strengthen our Competitiveness", Merkel pointed out.  "In order to achieve this Result, it's obvious that a Stronger Coordination of Economic and Financial Policies inside €uroZone is indispensable".

As she reminded from the outset; the current Franco-German move takes place in the framework of the "anouncement", made last "July" in Brussels, "that we'll make proposals, during August, in order to Strengthen Cooperation inside €uroZone", (as "EuroFora" had noted  : See earlier, July 2011 NewsReport).

Nevertheless, making an implicit, indirect reference also to the recent Financial Markets' events, mainly since the begining of August, Merkel also observed that "we are still facing the aftermath of the Global Economic and Financial Crisis, which is presented as a (Sovereign) Debt Crisis".

-"We are Convinced that our Choices are Right, and that €uroZone must advance in this way and achieve this raprochement", even if "we are Conscious of the fact that this will be a Long Process, advancing progressively, and that all won't be done from one day to another", said the German Chancellor.
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* €uroZone Heads of State/Government regular Summits + Chairman
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=> - "The 1st" among the Franco-German "proposals", (for final decisions by all involved on October 2011), "is to establish a Real Economic Governance of €uroZone, .. consisting by a Council of its Heads of State and Government", which "will meet 2 times each Year, or more if necessary, and will elect a Permanent Chairman for 2,5 Years", for which "we propose M. Herman Van Rompuy", Sarkozy anounced from the outset.

- Indeed, "we want .... to Strengthen (also) €uroZone's Institutional aspects, by holding Heads of State/Government Summits twice each year, under Herman Van Rompoy's chairmanship", so that "we'll be able to discuss, if necessary, frankly, the problems, as they stand, and in order to make commitments entirely binding", added Merkel.

Obviously "Government" or "Governance" means, here, not the usual, institutional Bureaucracy surrounded by complicated technical details, but rather the Top Decision-making on Strategic Orientations, directly and simplly by the Political Will of €uroZone's Heads of State/Government's Summits, (See supra). I.e. something equivalent to "Steuerung" in German and/or "Pilotage" in French, etc.
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+ On the "Golden Rule" :
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+ "Moreover, we wish that all 17 €uroZone Member States adopt, before Summer 2012, a "Golden Rule" on Debt Brake, i.e. "to insert in (their) Constitutions" or other High level Legal Texts, "the Rule that annual Budgets must respect an aim towards returning into Balanced Finances" : "It's a common sense rule, which must lead towards reduced Deficits and reduced Debts", Sarkozy anounced.

After Germany, France already voted for that in its Parliament and Senate, and if a 2/3 Majority agrees (i.e. including at least a part of the Socialist Party - Opposition) the Constitution will be modified accordingly this Autumn. Otherwise, the People will decide on that in the May 2012 Elections, Sarkozy anounced, making, thus, of Debt Reduction and "National Budget Equilibrium" also a National Politics Issue...

-"The 17 €uroZone Countries' Economies have a Problem of Debt and Deficit. That's particularly true in a Certain number of Countries. F.ex. France presents a Budget in Deficit during more than ...35 Years. That's not a problem of (Political) Opposition or Majority, nor of Right and Left. It's a question of Good Sense : Will we decide to put a Stop to these Bad Habits, or not ?"

- "The "Golden Rule", that we propose, consists into saying that, from now-on, the Annual Budgetary Laws will have to be inserted inside a Project for the Legislative (Period), a 5 Years Project, having as Perspective to Return into a (Financial) Equilibrium"; Sarkozy explained.

- "Who might be against such a Common Sense Rule ? Now, concerning €uroZone, if one wants to bring back Stability, if one wants for €uroZone to make Progress and not to fade away, he has, therefore, to make Progress in Competitiveness and to Harmonize our Deficit and Debt Reductions. Thus, if our Proposal is Accepted by the 17 (Countries), then, all those who are €uroZone Members will have to Respect that Rule", the French President clarified later in reply to Journalist's questions.

- "€uro (Currency) made possible many Economic Progress, because we are much Stronger Together than alone. But €uro isn't only composed of Rights, it's also about Rules, Duties, a Discipline, a way to live together, which implies Solidarity in Hard Times, but also to Respect Rules. In consequence, if that Rule is Adopted by the 17 (€uroZone Countries), as we wish together with the (German) Chancellor, it's not going to be an Optional Rule, but a Binding Rule. Because, if it was simply an Option, then, why should Certain €uroZone Countries respect it, while Others could Exonerate themselves from having to do so ? And in the name of what should, those who exonerate themselves, turn towards those who made Efforts, telling them : - "Sorry, but we've exonerated ourselves from that Rule, would you please Pay for us now ?"...

- "I say that even more when I think what our Spanish and Italian Friends are Doing Today, since, together with the (German) Chancellor, we find that the Governments of these two Countries Recently took some extremely Useful Decisions for €uroZone's Credibility", Sarkozy observed positively.
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- "The proposals that we present today are made in order to Strengthen €uro's Stability", stressed also Merkel, speaking of the "Golden Rule" :

 - "This is a very Ambitious project, of the same kind as the Retirement shemes' Reform (recently) accomplished in France, but we believe that it's, precisely, such kind of Reforms that will allow us [€uroZone] to find anew a lost Trust, that we want to strengthen" even more, she added on this point, "welcoming particularly" Sarkozy's anouncement.

Questioned on a Time "Horizon for returning towards an Equilibrium" of National Budgets, Merkel replied that "our Time Deadline aim is for the Middle of 2012 : Herman Van Rompuy will make (concrete) Proposals to all €uroZone during the Fall, and, afterwards, their Implementation must be done in the Middle-2012".

- In wider terms, "our proposals aim to Win anew Markets' Trust by our Acts", explained the German Chancelor.

' Even it "for some Countries, (f.ex. in Greece since 1980-2000 : See relevant, earlier "EuroFora"s analysis and Facts);  the Debt Crisis goes Back for many Years (in the Past), and won't be overcome from one day to another, nevertheless, we are Convinced that, thanks to a Permanent Action and a Work on the Fundamentals, we'll become Able to Win anew this Trust", Merkel stressed.

- In particular, "we (€uroZone) have a common Stability and Growth Pact, (See the New Measures decided in Brussels' EU Summits during the 1st Semester of 2011, cited in recent "EuroFora"s NewsReports, also from EU Parliament, which currently prepares to adopt them), on which, we, France and Germany, will take Care to agree on September (2011), concerning the Legislative Package, including with EU Parliament"; she promissed.

- "But €uroZone Countries must commit themselves even more for the Implementation of the Fundamental Criteria of this Pact : I.e. Budgets in Equilibrium, and a Constant Reduction of Debt for 1/20, as the Stability Pact says, (for the part which is now) beyond 60% (of PIB), Merkel noted with precision.

- "France and Germany agreed, and we propose that also for the other €uroZone Countries, to insert what the (French) President called a "Golden Rule", or, as it's called in Germany : "a Debt Brake", in our Constitution or at another Legal level, with a Stronger Majority than the simple one, in order to escape from everyday aleas and commit States in a more Sustainable way to respect these Rules of Principle, as an Absolute Priority", she stressed.
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+ "Moreover, in order to Strengthen the Stability Culture, we want also to invite our (National) Parliaments to become Shelf-Responsible : If (EU) Commission makes Critical Proposals during the EU Semester (of National Budgets' check), then, Parliaments must be committed to do more than simply take note of these Critical Remarks, but really implement them and make them produce effects", Merkel anounced.

- In fact, "the heavier Sanction", in case of violation of the "Golden Rule" by a National Government, "wouldn't come from (EU) Commission, but from the Interior" of the Country concerned, replied Merkel to a Journalist's question about "what kind of Sanction" would face recalcitrant States.

- "That's why, insert that (i.e. the "Golden Rule", alias : "Debt Brake") inside the National Law, is the Best way to commit ourselves, and this is a commitment due to last for a long time", she added.

 - "Why do we propose to insert the Rule on Public Finances' Equilibrium inside our Constitutions ? Because we have everywhere (inside EU Countries) Monitoring bodies which can Verify, so that it doesn't depend only from EU Law. That's also a National Commitment, independent from Political Majorities, that Oppositions would naturally evoke, if it's not respected. That's why I think that this will contribute to Redress the situation, as also the voluntary commitments", Merkel explained.

- "Its Implementation is coming very Soon, since we are going to set it up on 2012, and we'll have to speak anew, of course, on the Binding character of this Rule. But, I think that we are making a Courageous step by presenting this Proposal".

- "It's obvious that European Countries are Now Conscious of their Responsibilities. And if they were more (conscious) in the Past too, then, we wouldn't have the current difficulties", Merkel critcized her "Socialist-Green" predecessors of the period 1999-2002, (particularly when they backed a former "Socialist" Government in Greece to enter €uroZone earlier than normal, without doing the necessary Reforms, in exchange of its acceptance of Turkey's controversial and unpopular EU bid : See "EuroFora's relevant previous NewsReports).

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+ EU Cohesion and Structural Funds :
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+ This seems linked with the re-"Orientation of EU Cohesion and Structural Funds towards Competitiveness and Growth ... during all the Post-2013 Pluri-Annual Financial Period", as Merkel described it :

- "For those Countries which present some Weaknesses, we propose that (EU) Commission has a stronger say vis a vis Program Countries, so that it will be really able to Intervene in order to ensure that the Measures servent the Competitiveness and Growth aims" : "F.ex. Greece and Portugal haven't yet consumed a large part ofo the (EU) Resources earmarked for them. That's why, on July 21st, we already decided that the (EU) Commission contributes with its Help for these resources to be Better Used".

- "This is a Debate that we'll have to tackle. We'll have to be Persuasive, because it's important that all 17 (€uroZone) Countries commit themselves more, including by inviting their Parliament to hear and follow (EU) Commission's Recommendations. Something which is a Total Innovation, ....which, I believe, will serve to achieve Success",  the German Chancellor underlined.
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No EuroBonds before €uroZone Integration :
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On the contrary, both Merkel and Sarkozy anew rejected, at least for the time being, and in the present situation, the idea, notoriously pushed by others, to establish a kind of "EuroBonds", as they made it clear in reply to Questions :

- "No", replied Merkel. However, "we are in Democracy, and, therefore, any Debate is always welcome and important, and that's why we always react to what is debated", she nevertheless accepted to discuss : "The Question is to find what we need Today in order to resolve the Crisis, and I feel that some People seach a uiversal Panacea, which would definitively make the Crisis go away... Thus, often, some of them predict that EuroBonds would be that Solution. But I don't believe in this kind of Unique Solution, and I don't think that we'll solve all Problems just by a simple stroke of a Magic Wand" On the contrary, "I think that our Proposals are Better Fit in order to win anew Trust, step by step. I think that this is the Good Method, and I don't think that EuroBonds might be helpful Today", she stressed, (apparently leaving open the issue of the Future).

- "We have exactly the same position on EuroBonds", agreed Sarkozy  : "They'd practically boil down into Guaranteing by a Triple "A" the Debt of all €uroZone Countries. This would mean that  we'd guarantee all the Debt, (but) without having the Control of the Expenditure nor of what provokes that Debt !", he criticized.

- "One Day (in Future), may be, one could imagine (to establish) EuroBonds. But only after the Conclusion of a European Integration Process, not at its Beginning !", Sarkozy clarified in a pedagogic way. "Can you imagine what we'll say to our Peoples, if everybody could make Debts freely and in full Independence, and, afterwards, ask from others, i.e. from Europe's bigger Countries, to guarantee them ?", he wondered. "Some tell me : - <<You just have to simply Prohibit for excessively indebted States to make more>> Debts. But, as things stand Today for EU Institutions, we don't have yet the Democratic Legitimacy" needed for that, he observed on the current Political field, (i.e. apparentrly leaving the Door Open for another, later moment in the Future, when a Higher Level of EU Integration will be realized).

+ "EuroBonds can't, eventually, exist but only at the Conclusion of an Integration Process, and not at all as its Prerequisite ! Because, otherwise, this would seriously endanger the most Stable €uroZone Countries, which have now the Best Ratings, and would, then, find themselves involved into Guaranteing Debts that they couldn't Control", he explained. F.ex., "if we'd say tomorrow that Germany and France would guarantee Everybody's Debt, without Limit and without any Condition, what would happen to our Countries' Crediblity, 6 Months later ?", he wondered...  

 - In fact, "I feel that those who propose to impose EuroBonds are the Same who proposed the creation of a Common Currency without a Previous Harmonization of Competitivenesses nor the establishment of an Economic Governance" in €uroZone, Sarkozy denounced, obviously referring to the current need to overcome, today, errors made in the Past (mainly 1999-2000).

=> On the contrary, "what we have decided (Today), looks much more Productive : I.e. an Economic Governance, a Stability Pact, an Harmonization of our Economies, a Will to ameliorate our Competitiveness in order to gain Growth (because Growth is the Key for everything), insert "Golden Rules" (aka : "Debt Brakes")  in the Constitutions to reduce Deficit, reduce Debt, and restore Trust, without which there won't be Growth", Sarkozy resumed. - "Here is our Reply, which isn't Ideological, but Concrete and Practical", Sarkozy concluded.
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+ EU MONETARY FUND
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The EU Monetary Fund, that we decided a few Months ago, (and easier ECB's interventions  : See also Infra) already has Enough Money to contribute for €uroZone's Stability, Merkel and Sarkozy also, firmly stressed, (wihout, however, excluding an eventual augmentation of its Resources in the Future, if it might become really necessary), to judge from their reactions to relevant Press questions :

 - "I'd remind the Fact that we created, during these last Months, a(n EU) Fund of 500 Billions € ! These are absolutely Considerable Amounts (of Money), which haven't yet been used in full, far from that... Nevertheless, some People claim that we'd better "Double" that Figure (of Money consecrated to the EU Monetary Fund). I'm also wondering why someone doesn't ask us to make that go "Triple", (i.e. put 3 Times more Money) ? Moreover, even if we Tripled that, during the Next Press Conference, someone would tell us : - "But, why didn't you multiply that by Four ?"..., Sarkozy ridiculized ad absurdum the usual Provocative pseudo-Criticism by some USA a.o. Media (that several EU personalities feel excessively aggressive and exagerated, during the current Post-Crisis' Global Trade Competition)...

    - "But we are trying to have a Serious and Reasonable Management. These are Considerable Amounts of Money. Moreover, I don't see, in the name of what, should we fix a Rendez-vous to Global Speculation; so that, at the very moment that the (German) Chancellor (Merkel) and myself might indicate a New Ceiling, (for the EU Monetary Fund's Financial Resources); then, Next Week; even this New Ceiling would be felt as Insufficient"..On the contrary, "We (France and Germany) think that the (EU Monetary) Fund is Sufficient, that the Scheduled "Softening", which was decided mainly for its Intervention in Banks' re-Capitalization, or for Market Interventions, (etc), is Sufficient, and our (Franco-German Leaders') Commitment, saying that we'll do what is Necessary to Defend €uro, in Agreement with the various European Institutions, is a Message that everyone should Understand well, and Listen well to", Sarkozy stressed firmly.

    - "We are Not Excluding Anything at all, we don't anounce anything at all". But "we are Convinced that the European Monetary Fund, whose Creation, a few Weeks ago, was desired by (German Chancellor) Mrs Merkel and myself; will be the Pertinent Instrument, in Agreement with the Independent Authorities of the (European) Central Bank, in order to face Speculative and Destabilizing attempts against our Currency", he concluded, obviously denouncing; by the way, any eventual dishonest manouvers in some shady Media and/or Market manipulators...
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    + "The main Message is that we have to Act in 2 Directions : Solidarity with those who are in difficulty, because we want to Defend the €uro which is our Common Currency and to Protect it from Threats, and, on the other hand, Efforts made by all involved", added on the same point Merkel :
    
    - "F.ex. Italy is being equiped with a New Program, which goes in the sense of the Stability Pact, and, now we are in the year 2011, during which we've established a Permanent Mechanism which can be called "European Monetary Fund", and we are going to propose to Herman Van Rompuy to equip it with Capacities and independent Analysis allowing to Examine the Situation of (€uroZone) Member States", the German Chancellor observed.

    - "Thus , we have taken Long-Term Commitments in a Serious and Credible way, but we must also take care for our Commitments to become Concrete and without Precipitating into "Easy" Solutions, at the expense of renouncing to Hard Daily Work to Reduce Debt. Something like that wouldn't be absolutely not useful in the Long term, and that's why we entirely share the views expressed by (French) President Sarkozy", Merkel concluded on this point.
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+ ECB Action :
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    + However,  it's noteworthy that, at the same moment that restrictions of National "Keynesian" Economic Policies multiply, meanwhile, the European Central Bank, at nearby Frankfurt, reportedly has just intervened to buy Spanish and Italian Bonds in Financial Markets in order to face Speculative moves at €uroZone level.

    Indeed, as if to ensure with all available concrete measures €uroArea"s political Will to win collectively the fight against Global Crisis' remnants, ECB anounced yesterday, (by a coincidence while "EuroFora" was moving from a German village in the Schwartzwald towards Strasbourg, before Paris, crossing People who came from Frankfurt, €uroZone's Banking Capital) that ECB had just spend some 23 Billions €uros to support Italy and Spain against Speculators, by re-buying their National Bonds...
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+ EU Financial Transactions' Tax ?
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+ Moreover, an EU draft bill to establish a Financial Transactions' Tax will be tabled in Brussels on September 2011 by France and Germany : - "That's a Priority for us", Sarkozy pointed out, (despite UK and some other EU Members' reported hesitations).

- "Our Ministers of Finance are invited to make concrete proposals supporting (EU) Commission's draft in view of the establishment of a Financial Transactions' Tax, whose Necessity seems obvious", stressed also Merkel.
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+ Franco-German Integration example
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 - In addition, "we are conscious of the fact that Germany and France must give an Example in (advancing resolutely towards  EU) Convergence (Integration)", Sarkozy stressed, obviously referring to the Freiburg process, i.e. the Strategy to launch further Franco-German "Integration" at the Heart of €uroZone, (See relevant "EuroFora"s NewsReport from the spot, during the 12/2010 event in Germany). - Therefore, "we've decided a number of other Measures, more specifically Franco-German", he anounced.

- "France and Germany are Ready to prove their Determination (also) in their Bilateral Cooperation" : "We want to ensure the Franco-Geman Raprochement also on Financial and Economic policies", and "prove that our Cooperation is Enriched", added Merkel.
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 + F.ex. "we'll be able to have a Common Corporate Tax, with the Same Percentage and fiscal Basis for all German and French Businesses", anounced Sarkozy.

For that purpose,  "we asked our Finance and Economy Ministers to prepare proposals in the Beginning of 2012, at a Franco-German inter-Governemental Summit, for 2013 (50th Anniversary of the Franco-German "Elysee Treaty"). - "It's not so easy, it's not simple, and we can't foresee exactly at which Date it will Start working, but we have fixed an Ambitious Calendar to start applying in 2013", he said.

- "We've chosen to open the "Green Light" for Fiscal Harmonization, by making a Joint Proposal for an identical Corporations' Tax on 2013, concerning both its Percentage and its Fiscal Basis : An Ambitious project, which will allow us to obtain Results", underlined also Merkel.

Questioned about a small Difference on Percentages, currently existing between French and German Corporate Taxes, ("Higher" in France), Merkel ensured that "there will not be any deterioration for German Companies, neither for French ones : Our Finance Ministers will take care" of that; she promised.

The move is obviously important, both for many SMEs and Trans-Border Economic activities and cooperations, as well as for the eventual development of Franco-German big Corporations, able to help boost Economic Integration at the Foundations of civil society.

+ But "there are also Other Issues on which we are going to make aproachments : Apprenticeship,  Research, Sciences, (etc)., are elements that we must support Together, and on which it's our Duty to extend this Convergence and Harmonization", went on to highlight Sarkozy for other such Future moves.
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+ We'll also "determine, by common agreement, the Same Economic Assumptions, during the preparation of our respective (National) Budgets", through exchanges between our Ministers of Economy and Finance, at the beginning of each Semester, Sarkozy added.

- "Whenever we prepare the (Annual) Budgets, we'll hold Franco-German Councils of Ministers to ensure that we are working on the basis of the Same Principles,.. and in order to prevent (EU) Commission's (eventual) criticism, ...by doing good Preparatory Work, respectful of the Stability and Growth Pact", observed Merkel.
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=> EU : Con-Federation. + €uroZone : Integration
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+ Concerning the Future and the Horizon for the European Construction, both Sarkozy and Merkel didn't exclude at all more Institutional Developments, according to the needs to face New Challenges, but clearly focused more on €uroZone's further integration, rather than EU's :
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- "If we want to Defend the €uro, then, we must be able to take the Necessary Measures", observed Merkel, in reply to a question on whether Lisbon Treaty (which "guarantees National Sovereignity in Financial and Budgetary Policies", as a Journalist noted), should be Changed.

- Thus, f.ex., "I find it very Positif that the European Stability Mechanism was able to be established thanks to a Reform of the (EU) Treaty", she added. +"Then, we both committ ourselves; and assume our Responsibilities, and I'm persuaded that it's the Key for Succes", Merkel concluded for the Measures proposed now in €uroZone.

- "I always was very Sceptical when, after it took a long time to elaborate (EU) Lisbon Treaty, when it was done, everybody, exhausted, said : "No more Reforms, as long as we live !"... Because, when a Community of States says that, "whatever might happen, we'll never change our Treaties", it's not a good omen...I'd find ill-advised to claim that we've already accomplished Lisbon Treaty's Last Reform", the German Chancellor criticized. - "I don't believe that Today we'd need a Treaty Reform, but I'd never say that, as long as I'm alive nothing will ever change no more, never... ", she carefuly observed, not excluding anything.

- "It's not an anouncement of an imminent Reform, but what I'm saying is that we must always Keep the Door Open in order to be Able to Face New Challenges", she concluded.
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+ "Lisbon Treaty is for the 27" EU Member Countries. And "the Complexity of Arbitrages and Compromises needed by the EU process is extraordinary", Sarkozy observed from the outset on this point.

"Europe is, perhaps, the Best Creation ever invented by Men to serve Peace. And, agreeing with the (German) Chancellor, I'm persuaded that there will be also other Institutional Rendez-Vous, also other Developments. How could it be otherwise ? How could we find the Right Measure for 27 [EU) Countries, and soon more, to be able to understand each other, despite Histories and Interests sometimes diverging ?", he wondered.

- "But, now, we are speaking of the 17 Countries of €uroZone, and, clearly, we are Heading towards a Strengthened Economic Integration of the 17" Member Countries, Sarkozy distinguished :  
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  - "For Europe, I'm convinced that Yesterday's Debates are no more those of Today", stressed in conclusion Sarkozy :

 - Because the Debates of Yesterday opposed the supporters of a Confederation,to the supporters of a Federation. That made sense", in the Past.

- "However, Today, we can clearly see that the Europe of the 27, (and soon of the 30, when we consider the Useful Candidacies that we have Today from perfectly European Countries",  - i.e. Croatia, Montenegro and Iceland), will advance, more and more, towards a Confederation".

- "But, who can dispute the Fact that, inside €uroZone (i.e. with 17 Countries), from the moment that we have a Common Currency, you can see the Vital Obligation, for €uroZone Members, to advance towards Economic Integration ?"

- "That's clearly a Change of conception", he underlined.

+ Moreover, "since the Institutions that we propose to Reform in €uroZone, are not enshrined by the Treaty, this allows to make Changes much more Easy than those which were inserted in the (EU) Treaty, and which gave place to the Long Discussions of Lisbon Treaty"', Sarkozy added, pointing at what had been stressed for the 1st time during the Historic, 1st €uroZone's Summit of Heads of State/Government; back on October 2008 in Paris, accomplished in the middle of the Global Crisis as a 1st mean to start Fighting against the Crisis, (See "EuroFora"s NewsReport from the spot at Elysee palace) :

 €uroZone's institutional structure, at least on Heads of State/Government Summits, wasn't established by Treaty, and, therefore, can be changed and developed much more Easier and Faster than EU's more rigid Legal Rules, just by Top Political Will and Agreements, Elysee Palace Counselors had warned Journalists, including "EuroFora" then...
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+ On EU GROWTH Potential :
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    Meanwhile, questioned on "Growth" prospects, the Franco-German leaders appeared Today Satisfied by Recent Results, but acknowledged the Need to boost €uroZone's Competitiveness by Investing in Science and Research, as well as to Stimulate Global Growth particularly through the November 2011 G-20 Summit at Cannes, under French Presidency :

- "We have almost reached the (Growth) Levels which existed before the (Global) Crisis", observed Merkel. "I think that we are on the Right Track.... In Germany, as well as France, the Year 2011 is marked by a Good Growh, with a Positive situation on Employement as well in Germany.

 - "But we don't have the right to Delay : We are invited to accomplish always more and to make the Right Choices, so that we'll have to speak again, both inside €uroZone (of 17 Member Countries) as well as in (EU's) EuroGroup", Merkel anounced.

- "Our main Task is to take care so that Europe's Growth Potential is Strengthened by Less Bureaucracy and more Scientific Activity", Merkel characteristically stressed, (reminding the main Philosophy of the recent "Stimulus" Plans throughout all EU, which succesfully pulled EU out f the Global Crisis.  Moreover, "we (€uroZone) must Strengthen our Growh Potential particularly vis a vis what exists in Other parts of the World", she added.    

- "You shouldn't look only on Trimestrial Figures";   she replied to a Journalist who pointed the finger only on a less good trimestrial result, with a recently reduced German Growth percentage for the last 3 Months. "We shall always see again and again Trimestrial Fluctuations", (i.e. momentary Ups and Downs), and "we know that some punctual events are uselessly overestimated (exagerated)" by some observers, but that "we must always focus on the Long-term Perspectives", she advised firmly.

- Prefering to point rather on what is happening at the same time also "in other parts of the World", the German Chancellor admitted that "we (€uroZone) are interdependent" vis a vis other Major Global Players, but also observed that "France currently chairs the G-20, and prepares the Cannes (November 2011) G-20 Summit, about which we spoke" with Sarkozy, expecting that "it will give, anew, an Opportunity to think at Stimulating (also) Global Growth".

 - "I also trust €uroZone's and the World's Economic Perspectives", agreed French President Sarkozy.  - "Concerning France, just after the 1st Semester of 2011, the Acquis of Growth is already + 1,4%", he observed, (obviously implying that the 2nd Semester of this Year will normaly Add even more to the Annual Figure for Growth).

 - "One of the Problems of €uroZone's 17 Countries is Competitiveness : We must Invest more in Education, in Research, in Innovation, in our Universities, etc., because, in order to reduce Debts, we need a Stronger Growth", Sarkozy added afterwards.

-  Therefore, it's also on "Research, Science, Aprenticeship, etc" that further Integration, spearheaded by France and Germany, should advance "Convergence and Harmonization", as he observed earlier (See supra).

+ But, at the same time, for the rest; he focused on the parallel need to "restore Trust, in order to bring back Stability in the whole World, as a way to return towards Growth and Jobs" :

- In addition to the fact that "many Developed Countries already had Big Debts before the Global Economic Crisis of 2008-2009", moreover, "this Crisis was incredibly Brutal, and certainly the most Important since a Century. Thus, in order to face that Global Economic Crisis, in order to support Growth and fill the gap of tremendous falls in Fiscal Revenue provoked by the Global Crisis, a certain number of Countries had to augment their Deficit and their Debt. This brought us, this year (2011) in front of a Debt Crisis. A this Debt Crisis provoked Instability, and everybody knows that Instability isn't good for Growth", he explained.

  - "Therefore, we must Restore Trust, with Sustainable Debt Programs, i.e. Reduce Expenditure, Reduce Deficits, Reduce Debt". Concerning, f.ex., particularly France, "Next Week, the Prime Minister, together with the Ministers of Economy and of the Budgets, will have an opportunity to anounce a certain number of Decisions, which will allow to take the pulse of France's absolute Will to be present at the Rendez-vous of our Commitments in terms of Deficit Reduction", he anounced. "As the German Chancellor also observed (See supra), it was important for France to Reform its Retirement Benefits Schema, and to Reduce its Public Expenditure, as well as the Number of Public Sector Jobs. It goes without saying that this Policy will continue. It's thus that we'll bring back Trust; it's in this way hat we'll restore Stability in the World, and it's by acting like that, that we'll find anew the way to Growth and, therefore, Jobs"; Sarkozy reiterated.
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+ EU Economy to be Strengthened by big Energy Findings ?!
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      + In fact, concerning Growth potential, €uroZone has, Today, also a brand New Master Card to play, with probably abundant Natural Resources for Cheap, Accessible and Secure Energy supplies.emerging in front of its eyes, not only in New Gas Findings by Norway, a European Economic Area Member, as well as Neighbouring Egypt, Israel, etc., but even from EU and €uroZone Member Cyprus' reportedly important Oil-Gas Potential inside its Exclusive Economic Zone under the South-Eastern Mediteranean Sea Floor, where Deep Drilling by specialized Texas' Company "Noble" is scheduled to start early October 2011 :

Confirming recently the Pioneer Informations Published by "EuroFora"s co-Founder as early as since ... 2002, (after an exceptionaly Important PanEuropean/Internatonal Geo-Science Conference in Strasbourg, organized by the World-Famous "Institut du Globe", added to independent, Personal Research), observers expext, indeed, to make in that South-Eastern Mediteranean Arch, (i.e. between Cyprus, Lebanon, Israel/Palestine and Egypt), so many Deep Sea Oil-Gas Findings, as USA recently did in the .. Gulf of Mexico (a Similar Geologic formation), which represent, according to a well-known 2008 Anouncement by former US President GWBush, more than 52% of USA's Energy Needs !...

The only current Problem there is .. Turkey's provocative attempts to threaten and/or exert pressure trying to Obstruct and/or Delay EU/€uroZone Member Cyprus' Oil/Gas Findings, despite relevant Agreements with all Neighboring Countries and American, Russian and European support on the principle of the EU Country's International Law Rights.

However, with a really Strong Political Will by EU/€uroZone Leaders, as that expressed today by the Franco-German "Motor" of European Integration, (See supra), - who is already Present in Cyprus' area even from the point of view of Land, Air and Maritime Defense, as early as since the 2006 UNO-sponsored Peace-keeping operation at the Lebanese-Israeli borders - such eventual Turkish problems could be easily overcome...
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16/8 :  Symbolic Date ?
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This, and several other pertinent aspects of the €uroZone development issue, apparently received Positive Hints already by the particular Symbolic Value even of the precise Date chosen by Sarkozy and Merkel for today's exceptionaly important Franco-German Summit :

 Indeed, the Date of August 16, chosen by German Chancellor Merkel and French President Sarkozy, is dedicated to Saint Etienne (Stefan/Istvan) :  The Historic 1st King of Hungary, who succesfully enracinated Europe's Christian roots together with a Strong Will for European Integration, at strategic, central GeoPolitical Crossroads : It symbolically evokes EU's ReUnification, (notoriously strengthened after the 2004 EU Enlargement in Central-Eastern European Countries, from Hungary to Cyprus, and from Estonia to Malta, etc), while also refering to Christians' raprochment towards ReUnification, between Caholics/Protestants and Orthodox, given the fact that his Mother was baptized by a Christian Orthodox Priest in Transylvania, (after her own father was baptized in Constantinople, Byzantine Empire's Headquarters : 330 - 1453), but Saint Etienne (Saint Stefan /Istvan) was baptized by a Christian Catholic Priest at Prague, while he was also recognized by Pope Sylvester as "Apostolic King" of Hungary, after which he became, nevertheless, ally of Byzantine Emperor Basil (f.ex. in defending Bulgarian areas, etc).

Known as "the patron" of .. Heads of State/Government, but, at the same time, of "Stonecutters, masons and Bricklayers", (i.e. of those who Build a New Home), his memory is celebrated on a date also considered as the "end of the harvest", and, therefore, of "a New Bread". For a long time, his memorial date has been linked to that of Bernard de Clairvaux, who succesfully spread all over Europe a New Monastic movement, known as "Cisterians", joining a call to return to the Values which were at the Sources of original Christian Communities, together with Manual and Natural life, as well as New, Inventive Technological Development. But Clairvaux is also known as a theorist for "Templar Knights", considered to be both good Warriors and Architects of Defense, as well as .. efficient inventors and organisers of new Economic relations throughout Europe, such as, f.ex., the precursors of Banks and other Financial realities on which Europe holds a unique, solid Historic experience of more than a Thousand Years...

Beethoven has even written a Musical piece for "Saint Etienne, King of Hungary". By an astonishingly  Timely coincidence, it was due to be played the same Day with another, relevant Musical piece called "Athens' ruins", where Beethoven launches a vibrant call for "Zeus' sons and daughters" to free their "oppressed People" from the "slavery" of a retrograde and corrupted regime imposed after 4 Centuries of Turkish Military Occupation : Both Topicaly relevant (Comp. Supra) ?....

2011 is the Anniversary Year of those landmark Beethoven Musical plays (reportedly the less known among his works), which were publlished on 1811, aiming to link Europe's History and Future.

(NDLR : DraftNews, as already sent earlier to "EuroFora"'s Subscribers/Donors. Look out for a Full and more accurate, Final Version, due asap).