The second is fiscal: euro-zone governments will be able to manage and reduce their fiscal burdens only with a limited mutualisation of debt.
But last year, amid the government's fiscal tightening, euro zone's stagnation and rising unemployment, growth slowed rapidly to about 2.4%, according to the International Monetary Fund.
Both also urge fiscal integration within the euro zone, as well as the introduction of Eurobonds.
Stricter fiscal rules in the euro zone are a precondition for any strengthening of the firewall, Germany insists.
There is a lot of talk about fiscal discipline within the euro zone, not least because financial markets are punishing Europe's peripheral economies for their profligacy.
The third option, and the one the Germans seem to prefer, is a closer fiscal union across the euro zone with stricter rules on debt and deficits.
Yet having been among the most vocal advocates of tighter fiscal discipline in the euro zone, Mr Rutte is hardly in a position to seek leniency from Brussels.
And will continue to do so until she has persuaded her colleagues to amend the euro-zone treaty to permit Brussels (spelled B-e-r-l-i-n) to control the tax, spending and fiscal policy of euro-zone members.
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That could also result in additional tensions in the euro zone if Hollande follows through on the issues he campaigned on, including insistence on renegotiation of the recently agreed German-led euro zone fiscal compact.
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The problems of fiscal deficits generally and Euro zone difficulties in particular are likely to act as a drag on business prospects for companies in the period ahead, especially if the growth markets are affected.
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Although the French government frequently called for better balancing fiscal discipline and euro-zone solidarity, Mr. Sarkozy sided with German Chancellor Angela Merkel to make sure all members of the monetary union stuck to a stringent diet.
His base case scenario has Europe surviving this current debacle and devising a fiscal union that makes the euro zone stronger than ever.
The alternative idea that Cyprus could be spared this fate by a fiscal transfer or direct euro-zone recapitalization of its banks an idea encouraged by some southern euro-zone members was pure pure fantasy.
The new euro-zone fiscal rules, improved budget discipline and decisive action by the ECB mean "we have the room to make fiscal policy with a more medium-term perspective, " Mr. Rehn wrote in his blog.
Earlier, stocks had posted stronger gains after French President Nicolas Sarkozy and German Chancellor Angela Merkel said they had agreed on a new euro-zone fiscal program to combat the debt crisis, and Italy's new prime minister outlined a new austerity plan.
Faced with an opportunity last December to wring concessions out of Brussels in return for supporting the euro-zone Fiscal Pact, he opted to make highly technical, apparently innocuous but actually implausible demands relating to the City of London, including a veto over single market financial rules.
They note the broad welcome for his plan to add pro-growth measures to the euro zone's fiscal austerity.
Spanish and Italian assets were under pressure again amid concerns about Spain's fiscal outlook and the sluggish euro-zone data.
Before the crisis Spain was well within the euro zone's fiscal rules.
And in both Britain and the euro zone, fiercer fiscal tightening can and should be countered by central banks keeping monetary policy looser for longer.
Following the weekend political developments in France and the Netherlands, the German-inspired fiscal pact, agreed by euro-zone leaders in Brussels in December, could also be delayed or thrown into question.
More recently, politicians have had to accept debt brakes and other devices to limit borrowing and many have submitted to external surveillance by independent monitors such as the U.K.'s Office for Budget Responsibility or, under the euro zone's Fiscal Pact, by the European Commission.
That would be politically incendiary and, by raising the real burden of their debt, would make these countries' fiscal problems and hence the euro zone's woes even deeper.
The extra cuts are needed to deal with what forecasters say would otherwise be a 2013 budget deficit of 4.5% of GDP, way over the 3% limit enshrined in the euro zone's new fiscal pact.
Monetary and fiscal policies became disconnected in Europe because the euro zone lacked this feature.
Messily, perhaps, European leaders are at least debating some of the right questions: what degree of fiscal federalism and risk-sharing does the euro zone need to overcome the crisis?
Moody's cut its forecast for the U.K. economy, saying Britain's economic and fiscal outlook have weakened due to the euro-zone crisis, though it kept its negative outlook and triple-A credit rating on the country.
More recently profligate countries in the euro zone have hidden behind German fiscal credibility and low interest rates to build a way of life that they could not afford, and which the Greek debt crisis blew apart a few months ago.
Mr. Draghi pointed to the imminent conclusion of a fiscal pact that will expand the scope for euro-zone countries to keep each other's budget policies on the straight and narrow.
Investors will be watching the Euro summit closely on Thursday and Friday, where leaders are expected to push for a new Euro-zone treaty that imposes tighter fiscal budgetary rules and harsher sanctions for violating them.
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