Crunch time for euro as Merkel and Sarkozy lock horns

The leaders are prepared for five days of talks ahead of a crucial EU summit on Friday. They are aiming to reach agreement on whether to move to stricter fiscal union in the EU, centralised in Brussels, as Germany advocates, or whether to allow countries to retain individual control over their own budgets. Diplomats say Germany and France remain divided, the FT reports, so no announcements are expected from today’s meeting. Meanwhile Ireland and Italy are preparing to introduce more austerity measures to support their fragile economies. In Italy, Prime Minister Mario Monti is due t...