Thursday

25th May 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).

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

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.

Schulz fails to beat Merkel in German home state

Former EU parliament leader, Martin Schulz, says the defeat of his social-democrats in North Rhine-Westphalia is "difficult". The elections showed that a "Schulz effect" does not (yet) exist.

Austria heading for snap elections

Foreign minister Kurz has taken leadership of the conservative party in what could lead to an alliance with the far-right.

News in Brief

  1. British PM to speak out on US terrorism leaks
  2. Tusk calls for 'values, not just interests' after Trump meeting
  3. Pressure grows on climate impact of EU timber harvesting
  4. US goes after Fiat Chrysler over emissions cheat
  5. Munich police break up Europe-wide burglar clan
  6. Report: VW threatened with €19.7 billion French fine
  7. Turkey begins mass trial of suspected coup leaders
  8. Merkel's CDU consolidates lead in polls

Stakeholders' Highlights

  1. UNICEFChild Alert on Myanmar: Fruits of Rapid Development yet to Reach Remote Regions
  2. Nordic Council of MinistersBecome an Explorer - 'Traces of Nordic' Seeking Storytellers Around the World
  3. Malta EU 2017Closer Cooperation and Reinforced Solidarity to Ensure Security of Gas Supply
  4. European Healthy Lifestyle AllianceHigh-Intensity Interval Training Is Therapeutic Option for Type 2 Diabetes
  5. Dialogue Platform"The West Must Help Turkey Return to a Democratic Path" a Call by Fethullah Gulen
  6. ILGA-EuropeRainbow Europe 2017 Is Live - Which Countries Are Leading on LGBTI Equality?
  7. Centre Maurits CoppietersWhen You Invest in a Refugee Woman You Help the Whole Community
  8. Eurogroup for AnimalsECJ Ruling: Member States Given No Say on Wildlife Protection In Trade
  9. European Heart NetworkCall for Urgent Adoption of EU-Wide Nutrient Profiles for Nutrition & Health Claims
  10. Counter BalanceInvestment Plan for Europe More Climate Friendly but European Parliament Shows Little Ambition
  11. Mission of China to the EUPresident Xi: China's Belt and Road Initiative Benefits People Around the World
  12. Malta EU 2017EU Strengthens Control of the Acquisition and Possession of Firearms