Sarkozy and Merkel find agreement on key EU issues

French President Nicolas Sarkozy and his German counterpart, Angela Merkel, appear to have reached a deal on two key issues, with both leaders on Monday referring to the friendship between the two countries after months of cool relations.

Following talks on the margins of the CeBIT information technology trade fair in Hanover Germany on Monday (3 March), Berlin and Paris reached agreement on France's planned Mediterranean union and on how to approach European Commission proposals to red...