Merkel calls for euro fiscal union and more discipline

The German Chancellor Angela Merkel has told the Bundestag that there is a need for more moves towards fiscal union in the euro zone.

She dismissed ideas that Germany wanted to dominate Europe as “ridiculous”, saying stability was in everyone’s interests.

The Chancellor insisted on the independence of the European Central Bank and again rejected the use of eurobonds as a possible mechanism to deal with the debt crisis.

Referring to mistakes at the time of the euro’s launch, she said what was needed now was more fiscal discipline, with sanctions for countries that failed to respect the rules.

Merkel’s intervention comes less than 24 hours after Nicolas Sarkozy called for more economic convergence.

Like the French president, she said changes to EU treaties were necessary.

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