French president Nicolas Sarkozy is pressing his European partners to set up a group of euro zone leaders with a secretariat to act as an economic government for the single currency region, it was reported today.
"Nicolas Sarkozy is looking for ways to get Germany back into the European game," Le Monde newspaper said in an article published on its website.
"According to his entourage, the French president once again envisages the creation of a forum of heads of state and government from the euro zone, with a secretariat, which would be the true economic government of Europe."
The newspaper noted that Germany had already rejected similar proposals for a formal body to coordinate economic governance in the euro zone.
But it said Paris believed firmer budget commitments by euro zone governments and other concessions, such as approving Bundesbank President Axel Weber to succeed Jean-Claude Trichet as the head of the European Central Bank could help sway Berlin.
"If it judges that the guarantees that have been obtained are sufficient, Germany might accept the Eurogroup," Le Monde said.
The newspaper said that French authorities were moving cautiously with the idea in order not to provoke any open rejection from Berlin.
"The French president has taken the precaution of not describing publicly the economic government which he envisages because a display of Franco-German disagreement could be fatal to the euro," the newspaper said.
Reuters