The German Chancellor, Angela Merkel, says the EU must in future have the power to veto individual nations’ budgets to avoid future crises in the euro zone.
Merkel is under increasing pressure at home from opposition politicians who are threatening to derail plans to boost the zone’s bail-out fund, as part of a grand project to contain the Greek debt crisis.
“We must ensure – and I will fight for this in Europe – that we will get the rights to act against those who again and again approve budgets which do not respect the pact for stability and growth, that we can declare null and void these budgets if not we cannot get out of this crisis.”
The latest proposals would effectively increase the bail-out fund from €440bn euros to €2 trillion. Greece would also be allowed to default on half of its debt.
Merkel is due to meet the Greek prime minister on Tuesday evening.