WASHINGTON (Reuters) - Failure by European leaders at their summit this week to fix the fatal flaw in the euro zone, its lack of political union, would risk tremendous market upheaval, a rupture of the
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Update Dec 4 '11:
But the uneasy peace will not last unless Sarkozy and German Chancellor Angela Merkel, who meet on Monday to discuss changes to the EU Treaty, can finalize a fiscal deal that imposes tough budgetary rules on the 17 euro-zone members and then convince all 27 EU leaders on Friday to back the plan.
Treasury Secretary Timothy Geithner is flying to Europe next week to press the urgency of the matter, meeting politicians from France, Germany, Spain and Italy, as well as the European Central Bank. His assistant secretary for economic policy, Jan Eberly, said a European recession would blight U.S. recovery and is "absolutely a source of concern."