German Chancellor Angela Merkel declared in a speech in the German Parliament in Berlin on Friday that her goal is an economic policy union. The speech comes in advance of the upcoming European Union summit.
Merkel gave her speech on European policy just a day after a similar one by French President Nicolas Sarkozy. Reuters news agency reported that advisors of the French and German leaders had conferred to coordinate the content of the speeches.
Merkel emphasised that the EU needs to avoid a split between the euro countries and those which do not have the currency. “We want to offer countries outside the eurogroup the possibility to take part in the implementation of the toughest obligations”, she said.
French and German leaders have put forward the idea of an economic policy union earlier as well. In spite of common planning there were differences in emphasis in the speeches.
Merkel emphasised the strengthening of EU institutions, while Sarkozy spoke of the future of the EU and increasing cooperation among the member states.
Merkel says that the prestige of EU institutions needs to be boosted so that rules that have been commonly agreed upon would be obeyed. She said that it is necessary to bring stronger and better established structures to the eurozone.
In her view, each EU country should impose a debt cap by passing legislation stating an upper limit to indebtedness. Germany already has such a law.
Merkel and Sarkozy are meeting in Paris on Monday to further work out the details of their plans for the summit later in the week.
The summit will be another attempt to save the Economic and Monetary Union in the wake of the severe debt crises of a few of countries involved.
Many observers have seen the meeting as the last opportunity to prevent the disintegration of EMU.
