German Chancellor Angela Merkel and French President Nicolas Sarkozy ended their first meeting in 2012 in Berlin with assurances that they made progress on the proposed fiscal compact by the EU summit in December.

In the press briefing following the meeting they said that progress has been made on the pakns to toughen the budget rules across the eurozone and they assured their commitment to a stronger currency union assuring that there is no other alternative to the union and the intention is that no country leave the euro.

Both leaders are working their way to bridge any differences to make more progress ahead of the coming EU summit on January 30 and they also pressed on the need to continue the work with Greece to assure that it attains the next bailout and also will be meeting with the Italian Prime Minister which will be heading this week to Berlin and also scheduled to meet Sarkozy and Merkel in Rome on January 20.

Merkel though reiterated the importance of progress on the situation with Greece assuring that the next aid tranche might not be possible unless progress is made on the new rescue package saying that we must see progress on the voluntary restructuring of Greek debt and she added saying that she would talk with the IMF chief Christine Lagarde about Greece in Berlin on Tuesday.