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German chancellor calls for tighter control of the budget for crucial week for the currency, leading to optimism in the stock market

greater control over tax policy and expenditure of the German currency, partners in the beginning of a brand or break of five days for the euro.

Try to stop the fall of the currency to collapse, the German Chancellor has finally taken steps to calm the financial markets when he said it was time to stop talking to a fiscal union and begin to create one. Merkel said, however, that negotiations for greater centralized control over the budgets of the 17 members of the euro area can not be rushed and may involve a renegotiation of the Lisbon Treaty.

interest rates on government loans Italian and Spanish markets have fallen sharply and rose on expectations that politicians take seriously the crisis of the euro and realized the potential damage that could cause a break. But, as Ms. Merkel said that the process could take years, and could still be blocked by politicians of one of the 17 countries in the area who want to keep control of their budgets.

David Cameron, for whom discussions of fiscal union may be closer politically dangerous, was in Paris to meet French President Nicolas Sarkozy. Prime Minister concerned about the impact of a chaotic disintegration of the euro in the UK economy is already fragile, said he opposes the plan Merkel.

France and Germany are trying to develop a more detailed plan at a summit on Monday after Merkel described the proposal in the Bundestag, while U.S. Treasury Secretary, Tim Geithner, will demonstrate Washington's concern about the risk to the global economy posed by the crisis in the monetary union, when he made his fourth visit to Europe in six months.

reluctant to cede too much control over the ability to Paris to establish its own budget, and some analysts warned that EU leaders summit next week in Brussels, the government could end up with only the Sarkozy lower chords. Chris Iggo , head of fixed income at AXA, said: "The result of the crisis is the breakdown or the makeup option is to throw in the towel on the idea that national sovereignty can be fully preserved. in a monetary union. "

Merkel calls for a new system under which countries using the euro will ultimately be necessary to sacrifice the budgetary and fiscal powers of a European authority to supervise and approve or veto the budget. It would penalize those whose debt levels are considered to destabilize the currency. He said, however, that there was no quick fix to a crisis that had taken years to develop, and stressed that there was no danger to the budget German sovereignty.

The strength of the argument of Ms. Merkel is not to resolve the immediate crisis, but the installation of a long-term to ensure that never happens again. The Lisbon Treaty should be revised to make it happen. However, if this proves too difficult, he said in his remarks resonate at Downing Street, the leaders of the euro area could take matters into their own hands the EU Treaty.

negotiating the Treaty of the EU could provide Cameron with the dangerous task of trying to avoid a rupture between his pro-European Lib Dem coalition partners and the party wing Eurosceptic Conservative increasingly impatient .

apocalyptic warnings in the middle of the room a decade, has been in the past, with only a few days went to the leaders of Europe to prepare a response to the crisis of sovereign debt markets calm bond, Merkel stressed, however, it would not be rushed and that there was no quick fix to a crisis that had taken years to develop.