European shares have fallen today after a meeting between French President Nicholas Sarkozy and German Chancellor Angela Merkel failed to calm investors' fears that the debt crisis could spread. The two leaders agreed that more economic integration is needed between the countries in the Eurozone during a meeting yesterday.
They also said that Eurozone countries should all pass amendments to their constitutions forcing them to work toward balanced budgets and reduced debts. They also insisted that any plan to issue so-called “Eurobonds” — backed by the eurozone as a whole rather than individual countries — would not be on the table until closer economic integration had been achieved.
Stephen Evans, correspondent for our partner the BBC, joins us from Berlin.