We show that meridional circulation can have a profound influence on d
ynamo models for the solar cycle. Motivated by the observed tilt angle
s of sunspot groups we assume that the generation of the poloidal fiel
d takes place near the surface, while a shear layer of radial differen
tial rotation produces the toroidal field at the bottom of the convect
ion zone. Both layers are coupled by a circulation with a poleward dir
ected flow in the upper part and an equatorward flow in the deep layer
s of the convection zone. The circulation forces the toroidal field be
lts (which are responsible for the surface activity) to move equatorwa
rd. This leads to butterfly diagrams in qualitative agreement with the
observations, even if the dynamo wave would propagate poleward in the
absence of circulation. This result opens the possibility to construc
t models for the solar cycle which are based on observational data (ti
lt angles, differential rotation, and meridional circulation).