France, Germany Unite to Urge Fiscal Discipline

In a joint letter to the EU released yesterday, Sarkozy and Merkel urged the current Czech President of the EU for more financial regulation. This unusual letter follows a G-20 meeting of financial ministers that took place last Saturday, during which France/Germany disagreed with the US/UK on how best to stem the financial crisis. While Geithner continues to urge for increased worldwide stimulus packages, European leaders believe that tighter regulation is the answer.
With the crisis currently reaching the least developed nations and world leaders disagreeing on how to handle the situation, it will be interesting to see the outcomes of the upcoming G-20 Summit in April. Without the support of Merkel and Sarkozy, Obama will need to work harder to convince the heads of state and international institutions that reform and aid, rather than just regulation, are needed to revamp the economy.