The German Chancellor Angela Merkel has told the country’s parliament, the Bundestag, that there is a need for more fiscal union in the euro zone.
She said EU treaty changes would be needed to introduce greater European powers, but dismissed criticism that Germany wanted to dominate Europe as ‘misleading’.
She also warned that saving the euro would take years, saying Europeans faced a long, hard “marathon” to restore lost credibility.
“The government has always made clear that the European crisis cannot be solved in one fell swoop, overnight. There is no such thing as the one fell swoop solution here. There are no easy and fast solutions: especially not – as some people insist on saying ahead of every summit – ‘one last push’,” she said.
The Chancellor said the European Central Bank could not intervene like national central banks, and again rejected eurobonds or any other collective guarantee of individual government’s debts.
“Whoever still hasn’t understood that Eurobonds are no means of rescue for the crisis, has not understood the essential nature of this crisis,” she added.
Merkel called for sanctions for countries that fail to respect fiscal rules.
On Monday she is to meet Nicolas Sarkozy to plan a common stategy ahead of another crucial EU summit. The French president said on Thursday night that Europe had to be “refounded” with France and Germany at its heart to ensure stability.