8:00pm UK, Monday May 07, 2012
Germany's leader says the EU fiscal pact is "non-negotiable"
French President-elect Francois Hollande spent the day with his transition team - as the problems he faces in his anti-austerity drive were thrown into sharp focus by Germany.
He was warned there was no question of unpicking an EU "fiscal treaty" agreed last December.
German Chancellor Angela Merkel told reporters: "We in Germany, and me personally, are of the opinion that the fiscal pact is non-negotiable."
That suggests EU leaders will attempt to agree a non-binding protocol on economic growth, which Mr Hollande believes is missing from the current approach to the crisis.
There is unease among Mrs Merkel's Christian Democrats about what Mr Hollande's centre-left campaign pledges of growth and state spending mean for efforts to contain deficits in the eurozone.
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