France, Germany Fight Over Eurozone Budget Power

Merkel continues to argue in favor of a supervisor with the power to veto national budgets if the budgets do not conform to European Union rules. Hollande is reported to have said that the issue of a fiscal union was not on the meeting’s agenda and that it is more important to establish a European banking union first.

Reuters reported that after their 30-minute meeting Merkel and Hollande agreed that there is a “tight timetable for introducing a banking union.” And the sun rises in the east.

Paul Ausick