30 OCT 2010
Britain and other European Union countries put their weight behind Franco-German calls for tougher eurozone rules at a summit today (29 October), agreeing on "limited" changes to the EU's main treaty in return for a cap on the EU budget.
The leaders agreed that changes were needed to create a permanent system to handle sovereign debt problems and endorsed tougher budget discipline rules, including sanctions on states that do not keep deficits and debt in check.
Angela Merkel, the German chancellor, said "everybody agreed that there must be a permanent crisis mechanism and […] that this will require limited treaty change".
She insisted, however, that "the crisis mechanism will only be valid for cases where the stability of the euro as a whole is under threat".
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