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Merkel, Sarkozy To Meet On EU Financial Crisis

Merkel and Sarkozy have spearheaded the response to the European financial crisis
German Chancellor Angela Merkel and French President Nicolas Sarkozy are expected to meet in the German capital Berlin to discuss ways to overcome the financial crisis that continues to plague the European Union.

Reports say the January 9 meeting between the leaders of the euro-zone’s most powerful nations is likely to discuss the possibility of a new Europe-wide tax on financial transactions, also known as a Tobin tax.

Such a tax is opposed by British Prime Minister David Cameron, whose government is concerned that it could hurt the global financial center of London.

Cameron on January 8 said he would use Britain’s veto in the EU to block such a tax, unless the measure was imposed globally to ensure fairness.

Britain, which does not use the euro, triggered turmoil within the EU when Cameron in December vetoed a new treaty on greater fiscal integration in the euro-zone.

compiled from agency reports