Angela Merkel and Nicolas Sarkozy
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Why humbling Italy's Silvio Berlusconi could delay a Euro deal

As European leaders meet in Brussels to try to establish a bailout fund for the Euro attention has focused on Italy's economic woes.

But efforts by France and Germany to persuade Italian Prime Minister Silvio Berlusconi to adopt tough austerity measures have been compromised after Angela Merkel and Nicolas Sarkozy appeared to laugh at the Italian leader during a news conference in Brussels.

Gavin Hewitt reports.