Merkel and Sarkozy aiming to secure guarantees for Ireland

FRANCE AND Germany have said they will aim for agreement at this month’s EU summit on guarantees for Ireland ahead of a second…

FRANCE AND Germany have said they will aim for agreement at this month’s EU summit on guarantees for Ireland ahead of a second Lisbon referendum.

Chancellor Angela Merkel and president Nicolas Sarkozy made the commitment in a joint newspaper article calling for tougher European financial market regulation.

“We will aim towards the June European Council accepting the agreed guarantees for Ireland,” they wrote. “We are confident that the Irish will decide for Europe.” In their article – “10 Theses for a Strong Europe” – the French and German leaders stated their common political goal as a “strong EU that protects us”.

The 27-member bloc was, they said, the best forum for Europeans to answer the question: “What economic model do we want?”

READ MORE

“The unregulated free market has failed. It led us into the serious crisis in which we still find ourselves,” they wrote.

“We want a responsible market economy that is committed to companies and employees, not speculators.”

The two leaders said they would work together to achieve the “competitive social market economy” at the heart of the Lisbon Treaty.

They spoke out against a “bureaucratic Europe of mechanical, pedantic regulations”, then called for new regulations to ensure the EU emerges from the financial crisis better-equipped than before.

“We call on the EU to agree the first resolutions in June to secure a real European regulation of the financial sector based on the co- ordination and co-operation of the regulators,” they wrote. “We want that Europe is a model for others in hedge funds, tax havens and the remuneration of leading employees and managers in the finance industry. We have to create a financial system that serves our companies and protects our savers.” To improve the flow of credit through European economies, the French and German leaders said they would demand a loosening of equity and a changing of accounting standards.

“We are determined that the European Union agrees all the necessary measures for these business and economic issues, in particular at the next European Council in June,” wrote the two leaders.

Ms Merkel and Mr Sarkozy said the Lisbon Treaty would strengthen the EU and described the June 7th European parliamentary elections as “the best means” for voters to participate.

Without mentioning him by name, they called on Czech president Vaclav Klaus to acknowledge the ratification vote of the parliament and “complete the ratification process”.