25 Nov 2011

France and Germany suggest changes to EU treaties

8:17 am on 25 November 2011

The leaders of Germany and France are to propose modifications to European Union treaties designed to improve governance of the eurozone.

The announcement was made after Angela Merkel and Nicolas Sarkozy held their first meeting with new Italian Prime Minister Mario Monti since he took office.

Mrs Merkel says they will not change the role of the European Central Bank, the BBC reports.

Mr Sarkozy says the suggested changes are intended to foster more eurozone confidence.

"Faced with the gravity of the situation, we have told Prime Minister Monti that France and Germany will during the next few days propose a few modifications to the treaties to improve the governance of the eurozone so there is more integration," he says.

France and Germany disagree about whether the central bank should act as lender of last resort.