The debate over whether Europe should have one central financial authority grew louder. Even Angela Merkel of Germany has hinted she would drop her objections to euro-bonds if this new authority has substantial influence over the budget activities of the region’s weakest nations economically. The European Commission would get much of these powers. Reuters reports Merkel would also like more central coordination of labor union negotiations and tax and social security laws. Merkel will have some difficulty with her position. The troubled nations in the region want euro-bonds which would put Germany’s credit rating as part of a whole package that would offer capital markets a way to inject money into the region. Merkel does not want the bonds carried on its financial back. Merkel does want to change the game so any such bonds are married with stricter central control of the financial fates of the weaker nations. They countries are likely to reject this, as they have in the past.
Douglas A. McIntyre
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