Friday

22nd Sep 2017

Merkel speaks out for two-speed Europe

  • Merkel is making big political statements about the future of the EU - but what do others think? (Photo: ec.europa.eu)

German Chancellor Angela Merkel has said she will use the gathering of EU leaders at the end of the month to push ahead with plans for a political union, including more sweeping powers to Brussels.

"We do not just need a currency union but also a so-called fiscal union - more common budget policy," she told Germany's ARD television early Thursday (7 June).

Thank you for reading EUobserver!

Subscribe now and get 40% off for an annual subscription. Sale ends soon.

  1. €90 per year. Use discount code EUOBS40%
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

She emphasised that a political union was also necessary: "That means that step-by-step in the future we have to give up more powers to Europe and grant Europe more oversight possibilities."

While there has been a concerted effort over the last two years to make sure that all 27 member states are on board when it comes to further integration steps, Merkel said ambitious states should not be held up by recalcitrants.

While it should be made possible that all member states take part "we should not stay still because one or other [member state] does not yet want to join in," said the Chancellor, making the clearest case yet for a two-speed Europe in matters of economic integration.

While these statements and similar comments she has made in the past are raising expectations about what the 28 June summit in Brussels can achieve, the German leader cautioned against thinking that it would lead to a big bang solution for the European Union.

But even despite Merkel's traditional down-playing of expectations ahead of an EU meeting - the summit is increasingly taking on a high-stakes feel.

It will take place after the Greek elections (set to determine the immediate future of the country in the eurozone) and the French parliamentary elections (freeing up President Francois Hollande from the domestic political arena).

Senior EU officials are working on plans to increase EU integration, including a banking union - seen as necessary to ensure the future survival of the single currency.

While Berlin has been leading the eurozone's aid response to troubled eurozone countries such as Greece, Ireland and Portugal, it is now also leading the debate on further political integration.

This push to give more powers to the EU level - part of Berlin's attempt to make sure countries keep their budgets in order in the future - is likely to expose deep fault-lines among member states.

France's response will be of particular interest.

Traditionally, the Franco-German engine has driven the EU forward. However, when it comes to the details, Paris has always been reluctant to give over-arching powers to the European Commission.

Merkel: eurozone needs more EU supervision

German's Angela Merkel supports more integration in the eurozone - a veiled reference to pooling debt provided EU institutions gain more supervisory powers.

UK better off in EU for now, says eurosceptic think tank

The UK would be better off staying in the EU than leaving it, the country's foremost eurosceptic thinktank has said. But London should use "likely" new treaty discussions to negotiate more beneficial EU membership terms.

UK sounds alarm on banking union

The UK has signalled it accepts that a eurozone banking union will go ahead and that it will not be onboard but warned it will seek "safeguards" to protect its financial sector and the single market.

Opinion

Are we heading for a 'half-Europe'?

Crisis rescue programs and the next seven-year EU budget have political implications that go beyond economics.

Juncker foresees two-speed Europe

EU commission president said that eventually there will have to be a two-speed Europe, in which core countries will work together more closely than with others.

EU 'embarrassed' by Catalan 'taboo'

Faced with the growing tension between the Spanish and Catalan governments, the member states and EU institutions would prefer not to get involved.

Stakeholders' Highlights

  1. Mission of China to the EUGermany Stands Ready to Deepen Cooperation With China
  2. World VisionFirst Ever Young People Consultation to Discuss the Much Needed Peace in Europe
  3. European Jewish CongressGermany First Country to Adopt Working Definition of Antisemitism
  4. EU2017EEFour Tax Initiatives to Modernise the EU's Tax System
  5. Dialogue PlatformResponsibility in Practice: Gulen & Islamic Thought
  6. Counter BalanceHuman Rights Concerns Over EIB Loan to the Trans Anatolian Pipeline Project
  7. Mission of China to the EUChina Leads the Global Clean Energy Transition
  8. CES - Silicones EuropeFrom Baking Moulds to Oven Mitts, Silicones Are a Key Ingredient in Kitchens
  9. Martens CentreFor a New Europeanism: How to Put the Motto "Unity in Diversity" Into Practice
  10. Access MBAGet Ahead With an MBA Degree. Top MBA Event in Brussels
  11. Idealist QuarterlyIdealist Quarterly Event: Building Fearless Democracies With Gerald Hensel
  12. Mission of China to the EUPresident Xi Urges Bigger Global Role for Emerging Economies

Latest News

  1. Leave politics out of agencies debate, says Polish minister
  2. Facebook helping Germany to stop Russian meddling
  3. It's time to de-escalate the situation in Catalonia
  4. Barnier: UK risks undermining trust in Brexit talks
  5. EU 'embarrassed' by Catalan 'taboo'
  6. EU-funded lobbying is expensive and undemocratic
  7. EU takes time to ponder tech giant tax
  8. Dieselgate disappointed car-loving commissioner