Merkel calls for more powers to Europe to resolve debt crisis
08 Jun 2012
German Chancellor Angela Merkel has called on countries to give up more powers to Europe ''step by step'' as the continent tried to find a way out of the debt crisis. She added, a ''political union'' was needed as leaders prepared for a closely watched summit later this month.
However, Merkel, who appeared on ARD public television's breakfast show today amid rising pressure on Germany to defuse the crisis, downplayed prospects of reaching a big solution to Europe's troubles at the 28-29 June summit in Brussels. With Spain's banking system in dire trouble coupled with Greece's uncertain future in the 17-country eurozone, the outlook for the continent's economy seems grim.
"I don't think that there is a single summit at which the big design will appear," Merkel said, suggesting that the discussions at the meeting would proceed according to established plans.
European officials in Brussels and also in several eurozone countries are pressing Germany to accept new measures, such as jointly issued eurobonds or a central banking authority.
Such measures would help defuse concerns about excessive debt in weak countries, they feel, Berlin is however not in favour of such steps on worries it would lower incentives for weak states to fix the finances and would cost German taxpayers more money.
Merkel repeated her motto for greater integration, "We need more Europe", however she offered no details on how, or how quickly, she was willing to embrace new measures other countries were asking her to accept.
