Merkel calls for ‘more Europe’

Angela Merkel, Germany’s chancellor, has called for “political union” in Europe as a response to the eurozone sovereign-debt crisis.

Speaking at a congress of her Christian Democratic Union (CDU) party in Leipzig yesterday, Merkel said: “The task of our generation is to complete economic and monetary union and build political union in Europe step by step.”

“That does not mean less Europe, it means more Europe,” Merkel said.

Merkel said a bold political response was needed to enable Europe to emerge from what she called “its toughest hour since the Second World War”.

Merkel was speaking during a debate at the annual congress on the future of the EU. Party delegates are today expected to approve a resolution setting out a number of areas where there should be more political integration in the EU.

They include EU citizens directly electing the president of the European Commission, and for the European Parliament and the Council of Ministers to form a two-chamber parliament. The party is also seeking more automatic sanctions for eurozone members that fail to abide by limits on debts and public deficits. According to a proposal from the party’s leadership, countries that fail to respect these limits would be referred to the European Court of Justice, with the possibility of the court imposing fines.

The CDU congress is taking place against a backdrop of further turmoil on eurozone bond markets. Yields on Italian government rose again yesterday after a short reprieve in response to news that Mario Monti, a former European commissioner, would replace Silvio Berlusconi as prime minister. Italy had to pay a high interest rate to sell bonds yesterday.

Yields on Spanish bonds rose to record highs yesterday. The increase came despite the prospect that the Socialist government would be replaced by the centre-right Popular Party following elections being held on Sunday (20 November).