Germany dashes eurozone expectations / Bundesbank head backs fiscal union poll / Merkel warns of ‘limited resources’

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Series Details 14.6.12
Publication Date 14/06/2012
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Senior government officials in Germany cautioned in June 2012 against expectations in the financial markets – and the capitals of its eurozone partners – at the introduction of radical new measures to defuse the crisis in the eurozone in coming days or weeks.

In a series of interviews, leading politicians and members of the government warned that even Europe’s most powerful economy was not capable of assuming responsibility for the debts of all its partners in the eurozone. They rejected demands for urgent introduction of jointly guaranteed eurozone bonds or the creation of a publicly funded bank deposit guarantee scheme.

Instead Germany was calling for a fundamental process of negotiating a 'fiscal union' to underpin the common currency. But they warn that it was likely to take many months of talks to agree on measures to reinforce the economic integration of the common currency area, almost certainly involving the politically unpopular process of changes in European Union treaties.

On the 14 June 2012 Chancellor Merkel warned her partners in Europe and the G20 leading world economies not to overburden the German economy in the battle to end the crisis in the eurozone.

Related Links
ESO: Background information: Barroso pushes EU banking union
ESO: Background information: A Sneak Peek at Tomorrow's Europe
ESO: Background information: Germany: A lonely path / Merkel insists on two-speed Europe
EUObserver, 13.6.12: Germany opens door for crisis solution as Spain downgraded
Deutsche Welle, 14.6.12: Opinion: No solution in sight for the euro crisis,,16024742,00.html
Spiegel Online International, 14.6.12: Euro Crisis Will Help Germany Balance Its Budget
EUObserver, 18.6.12: Eurozone crisis tests the Merkel method

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