Divisions threaten EU treaty

Associated Press

BERLIN

Plans by France and Germany to save the euro through closer European unity faced a serious challenge Tuesday from Britain, as deep divisions emerged between the 17 EU nations that use the euro and the 10 others that don’t.

Threatened by fears their joint currency may not survive, German Chancellor Angela Merkel and French President Nicolas Sarkozy have demanded changes to European Union treaties to tighten controls over spending and borrowing for all who use the embattled euro.

But Britain, which doesn’t use the currency, has threatened to put the brakes on treaty changes.

Sarkozy’s and Merkel’s comments reinforced market expectations that EU leaders at a Friday summit will finally contain, through tighter financial rules, the 2-year-old debt crisis that has engulfed the continent and threatens the entire global economy.