Germany, France, show a unified front

BERLIN, June 15 (UPI) -- French and German leaders said they had put aside some differences on how to handle Europe's financial struggles during a summit meeting in Berlin.

At a news conference, French President Nicolas Sarkozy said, "We both made a step toward each other," with France agreeing to include the 27-nations of the European Union in economic decisions, rather than just the 16 nations that share the euro as currency, The Wall Street Journal reported Tuesday.

Germany favors a larger group, which Chancellor Angela Merkel believes affords it more influence, the Journal said.

Merkel, in turn, agreed with the French concept of providing a more unified "economic government."

Tension has been building between the two nations over how to handle the debt crisis that began in February with concerns that Greece could default on its obligations. France favored early intervention, which Germany resisted.

Underlying that tension, France believes Germany's economic strength has contributed to the debt crisis. As the EU's dominant trading partner, weaker nations pay for German imports by increasing their debt. To offset this, France has asked Berlin to lower taxes to stimulate consumption in Germany.

Merkel, instead, proposed to cut government spending by $96 billion through 2014.

Germany blames generous benefits provided by Greece and other countries as the cause of the debt overload.