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CRISIS Merkel Warns Euro Salvage Could Take 'Years' Michael Sohn / AP Photo

Merkel Warns Euro Salvage Could Take 'Years'

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.

December 2, 2011 5:51 PM