German Chancellor Angela Merkel has told the Bundestag that the eurozone’s sovereign debt crisis will take years to resolve. She said the eurozone needed a new “stability union” with tighter fiscal controls.
German Chancellor Angela Merkel has warned that the eurozone’s sovereign debt crisis will not be solved “overnight.”
Speaking to the lower house of parliament, the Bundestag on Friday, Chancellor Merkel described the eurozone debt scare as “the worst crisis since the introduction of the euro,” and said that resolving it was a process that would take years to achieve.
In a speech to outline her government’s vision for securing the future of the common currency, Merkel called for a “sustained strengthening of the European economic and currency union.”
She said that the process of creating a fiscal union had already begun.
“We are not only talking about a fiscal union, we are beginning to create it,” she said, adding that the changes to European Union treaties would include sanctions against member states that fail to get their deficits under control.
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“Now these items are on the agenda, we are on the verge of it, there are still difficulties to be surmounted but their necessity is now widely recognized,” Merkel added.
The chancellor also reiterated her rejection of so-called “eurobonds,” saying they were no solution to the debt crisis.
Merkel likewise rejected opposition criticism that Germany was using its economic power to throw its weight around in the EU.
Green parliamentary party leader Jürgen Trittin accused Merkel’s government of moving too slowly on reforms, saying Berlin’s hesitations were threatening the survival of the eurozone and with it, German jobs.
Gregor Gysi of Germany’s Left Party meanwhile called for private banks to be turned into public institutions, saying it was the power of banks and insurance companies that had led to the financial crisis.