Angela Merkel wants to create a “fiscal union” to push for stronger rules on overspending as solutions to the ongoing European debt crisis, the Associated Press reported.
"Fiscal union is the aim, one with real power. There is no other way," she said as quoted by CNN. "We are working for treaty change, we want to avoid a split between euro and non-euro countries."
The German Chancellor said the “fiscal union” would be a long-term solution to the crisis and added that the European Central Bank should lower borrowing costs for countries saddled with economic disaster. Such plans, she said, could take years to implement.
"The German government has made it clear that the European crisis will not be solved in one fell swoop," Merkel said to the German parliament as quoted by the Associated Press. "It's a process, and this process will take years."
Merkel will meet with European leaders next week to find solutions and introduce the “fiscal union” plan.
CNN reported that the Chancellor said that quick fixes like Eurobonds are not a solution to Europe’s fiscal problems.
"I cannot imagine a common liability for the debts of others," she said.
The opposition Social Democrats blasted Merkel after her speech.
"Ms. Merkel, nobody blames you for this crisis, but your handling of it is going too far. While you are criticizing other eurozone countries, you plan to bring down German taxes," Social Democrat Frank-Walter Steinmeier said as quoted by CNN.
