Angela Merkel will hold crisis talks with President Hollande today as the strong “no” vote in Greece heralds a battle over the soul of the euro. The German chancellor is expected to use the meeting in Paris to push for new European Union powers to dictate economic reforms, while the French leader will defend national sovereignty.
As Greece has descended into political turmoil, Germany and France have split, with fundamental differences over the future of the euro erupting into the open.
In the coming months the eurozone will be divided. Germany, the Netherlands, Finland and Austria want coercive powers allowing the EU to impose economic measures on countries in the single currency. France, Italy and other southern Europeans say coercion will fuel a popular backlash