EU leaders gather for family photo, but divisions remain over policy
- 12 years ago
ROUGH CUT (NO REPORTER NARRATION)
STORY: EU leaders gathered for the traditional family photo during a two-day Brussels summit on Thursday (June 28) in a display of unity despite divisions over policy.
Ahead of the talks, tensions remained between much of the euro zone and Germany's Chancellor Angela Merkel, who showed no sign of relenting in her refusal to back other countries' debts.
EU leaders agree in theory that addressing the euro zone's imbalances must involve "more Europe" -- greater coordination of financial affairs among countries that share the common currency. But they disagree sharply about how to get there.
French President Francois Hollande argues that Europe must show greater "solidarity" -- support for weaker members -- before it asks them to give up independent policy powers. Germany, by contrast, does not want to use its credit rating to support others unless they share control of tax and spending powers first.
Spain and Italy, the latest euro zone countries in financial markets' firing line, are pleading for emergency action to bring down their spiraling borrowing costs before they are forced out of the bond market. They want the euro zone's rescue funds or the European Central Bank to intervene fast.
But Merkel insists that fundamental reforms to give European Union authorities power to override national budget and economic policies must come before any further shared liability.
STORY: EU leaders gathered for the traditional family photo during a two-day Brussels summit on Thursday (June 28) in a display of unity despite divisions over policy.
Ahead of the talks, tensions remained between much of the euro zone and Germany's Chancellor Angela Merkel, who showed no sign of relenting in her refusal to back other countries' debts.
EU leaders agree in theory that addressing the euro zone's imbalances must involve "more Europe" -- greater coordination of financial affairs among countries that share the common currency. But they disagree sharply about how to get there.
French President Francois Hollande argues that Europe must show greater "solidarity" -- support for weaker members -- before it asks them to give up independent policy powers. Germany, by contrast, does not want to use its credit rating to support others unless they share control of tax and spending powers first.
Spain and Italy, the latest euro zone countries in financial markets' firing line, are pleading for emergency action to bring down their spiraling borrowing costs before they are forced out of the bond market. They want the euro zone's rescue funds or the European Central Bank to intervene fast.
But Merkel insists that fundamental reforms to give European Union authorities power to override national budget and economic policies must come before any further shared liability.