Franco-German axis wins protection for welfare services

Germany and France joined their EU partners today in a drive to inject new life into Europe’s sluggish economy, after winning guarantees on the protection of the welfare state and the right to spend their way out of a slump.

Over dinner in Brussels last night, German Chancellor Gerhard Schroeder and French President Jacques Chirac won their fight demanding a review of an EU bill that would open up the 25-nation market for cross-border businesses in the service sector.