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Sarkozy, Merkel publish proposal to toughen spending rules to restore confidence in euro
PARIS (AP) ' German Chancellor Angela Merkel and French President Nicolas Sarkozy have sent a letter outlining their proposals to save the euro, including punishing countries that spend too much money.
The letter sent to European Council President Herman Van Rompuy on Wednesday sums up what the leaders outlined on Monday.
It says governments that allow their deficits to exceed 3 percent of their GDP should be automatically sanctioned and asked to lay out a plan for reducing spending. It also says that countries that continue to flout spending rules will face a series of increasingly strict sanctions.
Overspending and ballooning government debt is at the heart of Europe's crisis. Sarkozy and Merkel want their proposals to form the basis of a meeting Friday to tackle the crisis.