Germany, France in call for new European treaty

Germany, France in call for new European treaty
THE leaders of Germany and France called yesterday for a newcheap jewelry European Union treaty to restore
confidence in the euro and to ensure that the region's debt crisis never happens again.
French President Nicolas Sarkozy wholesale fashion jewelrysaid after a meeting with German Chancellor Angela Merkel that
they would prefer a treaty agreed by all 27 members of the European Union but would also accept a
treaty among just the 17 countries that use jewelry shopthe euro.
The new treaty should include automatic sanctions for countries that violate rules meant to keep
government deficits in check.
Investors cheered thechina jewelry wholesale two leaders' comments, with the euro and stocks rising and bond yields
dropping.
The meeting comes at the start of a crucial week for the eurozone, as it struggles to convince
markets that it is able to solve its debt crisis.
Sarkozy said a jointly-issued bond by all the countries that use the euro is not the solution to
the continent's debt crisis.
Many analysts have said that only by issuing bonds backed by the whole eurozone will Europe be
able to save its shared currency.
Stronger countries, like Germany and France, have resisted those calls, but some thought that as
the crisis worsens they might be forced to relent. Sarkozy reiterated yesterday, however, that a
common bond was "in no way" the solution to the crisis.
Stocks rose responded robustly in early trading yesterday, with the S&P 500 inching above its 200
-day moving average, as optimism grew that an upcoming EU summit would resolve the eurozone debt
crisis.
The Dow Jones industrial average gained 165.03 points, or 1.37 percent, to 12,184.45. The Standard
& Poor's 500 Index gained 21.76 points, or 1.75 percent, to 1,266.04. The Nasdaq Composite Index
gained 44.07 points, or 1.68 percent, to 2,671.
In Europe, the FTSE 100 index of leading British shares added 0.6 percent to 5,584 while Germany's
DAX rose 0.9 percent to 6,133. The CAC-40 in France gained 1.2 percent to 3,202.