Sarkozy and Merkel: We Need a New EU Treaty

Following a meeting in France, the French President threw his weight behind calls from the German Chancellor for changes to the Lisbon Treaty in order to prevent future government debt crises threatening the euro zone.

The move is a serious setback for David Cameron because he has opposed any fresh EU institutional changes and recently renewed his "referendum lock" pledge to hold a popular vote on any future treaty that passes new powers to Brussels.

In a joint statement with Chancellor Merkel, President Sarkozy proposed revisions to the EU treaty in order to bring in tough sanctions against countries that threatened the euro's stability by running high levels of government debt and to set up permanent EU bail-out fund.'

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