Sarkozy-Merkel meet to address austerity measures

French President Nicolas Sarkozy and German Chancellor Angela Merkel meet today in Berlin after reports of tensions between the two traditional leading powers in the European Union.

AFP

A Sakozy-Merkel summit set for 7 June was put off, giving rise to speculation that relations had deteriorated.

Monday's meeting is expected to address several of the big issues facing Europe, including:

• Austerity measures to tackle the crisis that has spread from Greece across the euro-zone;
• Centralisation of European economic policy;
• A eurozone-wide tax on financial transactions.
  

The two leaders also want to co-ordinate their strategies three days before the EU economic summit in Brussels.  

France and Germany pointed out some disagreements last week over how Europe should handle debt crisis.

France is looking for closer co-ordination between the eurozone countries by creating an economic government body, Anne-Marie Le Gloannec of the Center for International Studies and Research of Sciences-Po in Paris told RFI.

Germany wants to include all 27 members of the European Union in economic decisions.