Pressure grows for ‘more Europe’

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Quentin Peel
Financial Times
October 17, 2011

Across the German political spectrum, and among the nation’s business and banking community, pressure is growing for “more Europe” as the answer to the plight of the eurozone.

The details of how such closer-knit integration would work are still up for debate, but the overall direction is backed by a clear majority of the ruling Christian Democratic Union, headed by Chancellor Angela Merkel, and her liberal Free Democrat partners. The German Federation of Industry (BDI), the powerful manufacturers’ association, is in favour, and so are the opposition Social Democrats (SPD) and Greens.

Last week the call for constitutional change to underpin more European unity even won support from Josef Ackermann, chief executive of Deutsche Bank, although he criticised the government’s handling of the current crisis.

Policymakers are well-versed in the logic of the debate: the eurozone crisis exposed the lack of economic integration needed to complement the European monetary union. But if the 17 partners in the common currency are going to interfere in each others’ national fiscal strategies – hitherto regarded as the cornerstone of national sovereignty – then closer political integration is essential, say proponents.

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