Germany, France examine radical push for Euro Zone

Germany's original program, it's 17 euro zone countries, very tight budget constraints to impose, in preparation, 2012 Finally a definitive agreement to transfer all 27 EU countries in the agreement to try to preserve the - the region's defenses until the shoring is one way the credit crisis and against.

But in recent weeks in meetings with European Union leaders, it can not get on board that all 27 countries, German Chancellor Angela Merkel and French President Nicolas Sarkozy is clear, concise report of the European Union.

It, too, that Italy, Spain and France is now the recommended changes in market demand for weeks after the attacks of a brave and safe can take a year or more.

As a result, senior French and German civil servants is an agreement among a mere euro zone countries, the purpose of being examined on the other.

"Union has a goal to create a common currency for their own determination and the focus is on member states," German Finance Minister Wolfgang Schaeuble said on Sunday Ard television.

Another option being explored around 8-10 euro zone countries would involve a major contract outside the European Union is a separate agreement, officials said.

When they meet on Tuesday, the euro zone finance ministers met by a more pressing.

In the euro zone's bailout fund, the European Financial Stability Facility (EFSF), are prepared to allow a detailed operating rules, documents obtained by Reuters showed. [ID: nL5E7MR0UA]

Interest from the private and public investors, according to approved rules, EFSF increase resources and its co-investment funds in the coming weeks, attracted 440 billion euros in cash to clear the way.

The ECB must be rigidly Germany EFSF water supply or at the idea of ​​acting as a credit against the Spanish, Italian and French government bonds on the yields of all the away goals, the euro zone, will soon have a way of calming the markets to the euro lifetime highs.

Progress toward stricter financial rules, policymakers, investors believe that convinces. Schaeuble, a crucial decision that a firm can obtain more confidence in EU markets.

"It's a member of the euro zone, indicating that its budget discipline to do its homework. We deal with changes, to be sure," he said.

Radical overhaul

Reuters French and German officials, especially the smaller euro zone and fiscally feasible to establish an integrated and a radical overhaul of the European Union were discussing the plans that were announced on November 9.

"Germans. Made up their minds to change their contract and doing everything they can to push it as quickly as possible," a senior European Union official involved in talks, Reuters reported. "A senior German officials at every European capital on the phone all day there."

, The credit crisis on the gain is the only way - is jointly issued by the euro-zone bonds to pave only force acting European Central Bank more leeway in this - German and French finance union toward moving a hope that some other euro zone countries that goal very quickly move unable or unwilling there.

Besides, Greece, Ireland, Portugal, the European Union / International Monetary Fund's aid received, but Italy and Spain and Slovakia, some Eastern European countries, or the current economic situation is difficult, Germany wants the budget constraints to find, or simply need to aim not comply.

As a result, French, German, after the folding of the contract at the best possible deal for the EU, euro zone countries are exploring a number of very rapid integration of at least two samples.

The two models

A more Schengen III, prospective, open to any member state, and then 5 and 7, who was adopted by EU countries and Norway, countries outside the European Union but the contract is a contract signed in mid 2005 Pruem Convention is based.

Another option along the lines of other euro zone countries have signed the 1963 Elysee Treaty entirely French, German and Mini - to deal, officials say.

"Seriously discussed the options and things that we talk too, are moving very quickly," Reuters reported that the European Commission met on the discussions.

The original aim of a European Union leaders summit in Brussels last year, when it meets on December 9, before you set out to outline a contract stating that.

Euro zone and rapid fiscal consolidation is needed, highlight, in the past two weeks the two speeches made, it is a 'two-speed Europe' emerges as the inevitable must be accepted that one of Sarkozy, another special address to is due on December 1 on, he and Merkel emerging as a more detailed out who can provide feedback on a stage.

A senior German government official, no secret, France, German, denied there were negotiations, but the two countries and stressed that the best way possible to reach agreement on how to analyze and saw it and insisted on the need for change.

"Germany and France will be presented at the December EU summit to focus on a limited contract, the plans continue to change," the official said that the need to act quickly to get changes in place, said.

When they reached a state of emergency ECB buying bonds is intermittent style of fighting in the euro zone. The wave of economic and market return, but the central bank should act more aggressively, and Germany, suggest that such activity is against. In the euro zone governments to cover the structure of financial regulations, there may be concerns that need to change tack.

"The Securities and run off if it's true that even the European and world financial system stability fatally. ECB decided to bold action, of course, requires" Peter Bofinger, a German consulting five "wise men" an economy, government, the Irish state broadcaster RTE reported.

Financial integration among euro zone countries and in tight Reuters lot can be achieved if the ECB more room to maneuver it to buy government bonds and euro-zone officials on Friday reported a similar potential.

Rapid integration of the euro zone and European Union officials, through a contract with a sideline in the lower 17 states about applying too much pressure on the rest of the cast may want to warn that there are very clear about its determination to push France and Germany should be enough.

If they sign a deeper integration could be left behind in some countries, threatening, fearing it would leave it exposed them to market pressures, not to say that a country can be.

"You hear some of the postures in this area - soon to change the deal under pressure from Germany," said an official involved in negotiations.

"To some extent that has been put on the table to see these ideas are part of bargaining chips." 

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