Italy and Germany must "cooperate" and "continue to work together" to improve conditions in the eurozone. This was stated by the Italian premier Mario Monti and the German chancellor Angela Merkel who met today in Berlin. Words of praise from the chancellor on the "impressive" work of the Monti government which "is making a significant contribution to lowering the spread". Even Monti says he is satisfied: “In 8 months we have made significant progress. We have all worked in our share to improve the situation, and we are all convinced that structural reforms and fiscal control are essential to improve growth and competitiveness".
PROGRESS OF ITALY – Merkel seems optimistic: “The Eurozone has the ability to overcome the crisis. The important thing is to create employment and growth”. Monti does not fail to underline that Germany is an example to follow and that "it has taught us that our fiscal policy efforts must be persistent" and that we must not stop after seeing the first results. "Italy, as Merkel kindly acknowledged, has made significant progress in recent months, with the generous support of political forces, social forces and citizens above all, and these progresses are beginning to be recognised", as evidenced by "the good results of the issues” of public bonds, and the judgments of the international authorities”.
ESM and ECB – However, the two European leaders are waiting for other institutions to take their steps. First of all, the ECB, which on 6 September will explain what "exceptional measures" it intends to offer. And, on 12 September, the German Supreme Court will give the "key" ruling on the constitutionality of the new European Stability Mechanism. “We agree on an ambitious agenda,” Merkel said, “and we believe there will be the necessary means to strengthen the eurozone. The first point is the strengthening of the EFSF, this is really important”. But, answering a question, Merkel added: "I would like to quote Mario Draghi, it is also my belief that an ESM banking license is not compatible with the treaties". Monti, however, is more cautious and replies that the ESM banking license must be seen "from the perspective of the mosaic": as individual pieces whose purpose is to give rise and concreteness to satisfactory governance. "Certain things", concluded the premier, "that are not possible at the moment could be so under other conditions".
SYRIA – Finally, both the Italian premier and the German chancellor have expressed their concern about the situation in Syria.
