New radical proposals from Germany and France concerning the EU threaten to divide the 17 countries which currently use the Euro as their currency.
Both France and Germany have stated that they want to completely overhaul the European Union and build a much more integrated political and economic federation.
One of the plans being proposed is that countries would have to add a “balanced budget rule” to their constitution.
It appears that the European Court of Justice would be given the task of ensuring that these amendments would be effective.
National parliaments would also be legally constrained as to how much debt they could issue.
As usual the markets reacted on a positive note but commentators said that this was probably down to the fact that traders are hoping that the European Central Bank will now take a much more active role in controlling borrowing costs for countries, particularly Italy.
The new radical proposals certainly will be met with stiff resistance by many countries inside and outside the Euro zone as the measures will be seen as stripping away their national sovereignty.
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