German Chancellor Anglea Merkel wants the EU to have the right to veto member states budgets.
She said Brussels should be allowed to intervene when when budgets broke EU rules.
The idea is likely to meet tough opposition:
In a speech to the Bundestag she said:
“We believe, and I am speaking for the entire German government, that we can move on with this by giving Europe real rights of intervention in national budgets where the agreed limits of the growth and stability pact have not been adhered to. I repeat here today what I have said elsewhere, to the Greek prime minister and president on a visit to Athens. That I hope Greece will stay in the euro. I am not hoping for this because Greece is our friend and partner in the EU and NATO but because, despite the difficulties, it is in the interest of Greece itself as well as that of the entire eurozone and the European Union.”
The speech will cause alarm bells to ring among the French and others who are reluctant to cede sovereignty over fiscal policy.