German chancellor Angela Merkel has rejected calls for an economic recovery based on higher spending, and said moving away from long-term reforms would be fatal for Europe.
In recent weeks she has faced a growing opposition, as many of her European counterparts have rallied behind French President Francois Hollande’s calls for a regional growth strategy.
With the European economy on the brink of recession and many talking of the possibility of the euro breaking down, Merkel said the best solution is even closer integration:
“We do want Europe, we do want more Europe. But I want a Europe in which it is always made certain that joint liability and joint control are always connected. It cannot be that liability is common and control is left to individual nations.”
Merkel also reiterated her opposition to eurobonds saying they would only offer a quick fix. She said eurobonds or a centralised institution overseeing and guaranteeing bank deposits would only be possible in the final steps of a wider integration, not at the beginning.