European Union leaders are meeting in Brussels, Belgium to agree on a course of action for how to save the euro, the currency of 17 nations. French President Nicolas Sarkozy warned that a failure to reach an agreement is a “luxury we cannot afford.” Hours earlier, French minister for European affairs Jean Leonetti warned that the euro could “explode” and Europe “unravel.” The European Central Bank cut a key interest rate to 1%.
Mounting debts in European nations have led to governmental resignations in countries such as Ireland and Greece, and have pushed the euro to the brink of collapse. Germany and France are now calling for the EU to have more influence over the national budgets of countries under the euro. British Prime Minister David Cameron could be an obstacle, as any plans to change treaties would need all 27 members of the EU to agree.
