1. CRISIS

    Merkel Warns Euro Salvage Could Take 'Years'

    German Chancellor Angela Merkel gestures during her speech at the German Federal Parliament, Bundestag, in Berlin, Germany, Friday, Dec. 2, 2011. (AP Photo/Michael Sohn)

    Michael Sohn / AP Photo

    In an attempt to save the euro, German Chancellor Angela Merkel on Thursday called for a new European Union treaty that would create a “fiscal union” that would give the EU greater power to intervene in countries' budgets. "We have started a new phase in European integration," said Merkel, while acknowledging that the project could take years. French President Nicolas Sarkozy also called for a new treaty, but he appeared to rule out Merkel's approach when he said "The reform of Europe is not a march toward supra-nationality.” In the short term, the crisis continues, with Merkel reiterating her opposition to the European Central Bank issuing bonds.

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