Sarkozy and Merkel Plod On

At this stage, it must feel like a hopeless task. French President

and German Chancellor Angela Merkel keep meeting to try to resolve Europe's debt crisis but usually end up throwing insults around like Waldorf and Statler in the Muppets. Apparently though, those days are over. The two parties announced on Monday that they are close to agreeing a deal, following the one proposed in December, that will resolve the whole mess. According to

, the all-new fiscal pact is designed to make sure that countries do not rack up ridiculous debts by spending above their means. Following the most recent meeting, it could go into effect in March. The article states that, “Sarkozy stressed that eurozone governments should stand by their commitments to reduce deficits, adding that the agreement could be signed in the "coming days. The terms of the pact include, among other things, a balanced budget requirement with an "automatic correction mechanism," and a provision to make national budget policies subject to EU authority "ex ante," or before the fact.” Apparently all 17 political leaders of the eurozone nations have agreed to the pact, though some still need parliamentary approval. That should be a formality, though the bigger question is whether all of the countries are able to stick to the terms of the agreement. For their part, Merkel and Sarkozy are not giving up. “Merkel and Sarkozy, the leaders of the eurozone's largest economies, also reiterated their commitment to the euro currency and pledged to revive the continent's ailing economy.” "We believe in the Euro, we believe in Europe and must do everything to increase its competitiveness and foster job growth," said Merkel. Neither are they giving up on Greece, despite the many protestations from the German public. “The leaders said that Greece, the nation at the heart of the crisis, should remain a member of the currency union. But they called on the government of Lucas Papademos to push through reforms necessary to secure the latest installment of bailout money for Greece.” Both leaders confirmed their support for the approach to Greece taken by the private sector banks. “Merkel and Sarkozy reiterated their support for an agreement with private sector banks and investors to "voluntarily" reduce the value of Greek government bonds by 50%, which has yet to be finalized. But they cautioned that the so-called haircuts will not be enough to solve the nation's economic and debt problems.”