Merkel calls for binding reform contracts in EU states

German Chancellor Angela Merkel Wednesday called on member states of the European Union (EU) to commit to binding reform contracts during her first speech after being sworn in for a third term a day before. Speaking to the Bundestag, Merkel briefed the lower house of German parliament about the European policies of her new government ahead of an EU summit in Brussels slated for Thursday and Friday. The chancellor said there have been first signs of success in combating the eurozone debt crisis. She praised Greece, Cyprus and Portugal for progress they have achieved in dealing with the crisis. On the other hand, Merkel called on EU member states to make more efforts to fulfill reform promises by committing to binding economic reform contracts. So far, she noted, the member states have made reform decisions according to regular recommendations from the European Commission without any binding rules. For a push to carry out structural reforms, "contractual agreements" should be reached between the member states and the European Commission, and the EU treaty could possibly be changed for that if necessary, media reports quoted Merkel as saying. European leaders will further talk about this issue at the upcoming summit, Merkel said. She is due to head to Paris later in the day for talks in advance of the EU meeting.