The move would divide Europe -- according to a press report, Germany and the five other strongest euro member nations are considering the issue of so-called "elite bonds." A German government official has denied the report, but there is mounting speculation that the six nations plan to spearhead closer fiscal coordination.
Plans Would Divide Euro ZoneThe elite bond plans are reportedly part of a German government concept for a currency union treaty under which only a few euro-zone member states would initially agree to stricter budget rules and stronger fiscal coordination. If realized, the concept would enshrine widening divisions among the euro-zone nations in the debt crisis.
According to the tabloid Bild, there are German-French plans for a new euro treaty among the strongest countries of the euro-zone which is to be implemented quickly through bilateral agreements that would allow it to be in place by the start of 2012. German government sources have denied reports about secret talks with France about a new stability treaty. But it is clear that Merkel and French President Nicolas Sarkozy plan to submit common proposals for limited treaty changes ahead of the next EU summit on December 8 and 9.