Jean Quatremer reports that Angela Merkel is prepared to make significant changes in Europe's governance structures and treaties. François Hollande has given signs of thinking along similar lines. Both leaders are said to have been shocked by the clumsy handling of the Cypriot crisis at the European level.
I would be astonished, however, to see any movement on this front before the German elections, where Merkel now has to deal with unexpected problems, including a scandal in the leadership of the CSU, coalition partner of her CDU. Quatremer is no doubt reporting leaks from technical advisors in both governments. The political challenges to be overcome are enormous, and will remain so even after the German elections. Still, it is reassuring to think that there is movement on the issues of economic governance, banking reform, and treaty revision, all of which are necessary to preserve the euro.