German pessimism on euro deal

This may be a ploy by Germany to goose the rest of the EU into supporting the changes to the constitution that Germany is seeking. Then again, at least one Berlin official believes that some of the rest of Europe doesn't understand the gravity of the situation. Reuters: President Nicolas Sarkozy and Chancellor Angela Merkel will lay out a plan to amend the EU treaty to anchor stricter budget discipline in the euro area, aiming to restore market trust and prevent the sovereign debt crisis spiraling out of control. A French minister said the leaders of France and Germany would not leave Friday's European Union summit until a "powerful" deal is reached to arrest the crisis. But while Paris voiced determination, a senior German official gave a deliberately downbeat assessment of prospects for an agreement in an apparent effort to jolt partners into accepting Berlin's terms and restrictions. "I have to say today, on Wednesday, that I am more pessimistic than last week about reaching an...(Read Full Post)