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France and Germany to propose new EU deficit sanctions

media Nicolas Sarkozy and Angela Merkel speak during a joint press conference on the sidelines of a tripartite summit France, Germany and Russia in Deauville Reuters

France and Germany want to amend the EU Lisbon treaty and adopt new sanctions on EU countries which run up “excessive” public deficits, French President Nicolas Sarkozy says.

German Chancellor Angela Merkel and Nicolas Sarkozy met in the French resort town of Deauville, western France, on Monday ahead of a dinner with Russian President Dmitry Medvedev.

Sarkozy said Merkel and himself wanted to amend the Lisbon treaty which was adopted last year, by 2013, and crack down on deficits in order to assure financial stability.

“Sanctions could be adopted against states which have excessive public deficits and which have not taken any measures within six months,” said Sarkozy after his meeting with Merkel.

The French president is in Deauville to discuss security issues his German and Russian counterparts.

No big announcements are expected, but the get-together takes places a month before Nato allies meet to agree on their new security vision, and days before a G20 summit.

“We will discuss whether it is possible for Russia and Nato to cooperate better because the era of the Cold War is definitely offer,” Merkel said on Saturday.

"The Russian president has proposed a common security architecture. He is working step-by-step to define this architecture - of course in a spirit of partnership of all European countries with Russia," she said.

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