GERMAN CHANCELLOR Angela Merkel has given a guarded response to calls by her finance minister Wolfgang Schäuble for a new European treaty handing far-reaching finance and fiscal powers to Brussels institutions.
Mr Schäuble reportedly told a parliamentary party meeting of the ruling Christian Democrats (CDU) that solving the euro zone crisis was not possible without a successor to the Lisbon Treaty, “even though we know how difficult a treaty change will be”.
Reports about Dr Schäuble’s remarks come at a delicate time for the German leader, at the start of a month of horse-trading with German MPs. They are set to vote on the reformed European Financial Stability Facility (EFSF) bailout fund on September 29th, but have yet to agree a mechanism with Dr Merkel’s government to allow parliament control the flow of German contributions to the €440 billion fund.
“What counts at present for the government is that the challenges currently being faced are to be tackled with the tools and legal conditions available at present,” said Dr Merkel’s spokesman, Steffen Seibert, yesterday.
Dr Merkel said last month she was “always bothered” by talk of finality of the Lisbon Treaty. Mr Schäuble’s remarks about a new treaty could rattle German MPs already concerned that EU bailout structures will curtail Bundestag control of German budgetary and fiscal affairs. Mr Schäuble has insisted that national budgetary law isn’t up for discussion.
“The federal budget law is the fundamental right of our parliamentary democracy and no one can take it away,” he said. “As finance minister I don’t even want to take it away.”
His remarks yesterday were greeted with little enthusiasm among Irish officials, given the complexity of treaty negotiations, in particular treaty change requiring constitutional change and referendums.
The idea of further European integration triggers a mixed response among German voters, too, as a new poll showed yesterday. Almost two-thirds of Germans say they want more common decision-making in Europe, yet a slim majority (53 per cent) reject a “United States of Europe”.
In the current euro zone debate, two-thirds believe the Bundestag should reject reform of the EFSF bailout fund later this month. A similar percentage think the Merkel administration has made wrong decisions in the crisis.
Some 80 per cent believe the worst of the euro zone crisis is yet to come, while three-quarters say they fear a direct threat to their own prosperity from the crisis, according to the representative survey. Richard Hilmer of the Infratest/dimap polling agency said the results showed a clear aversion to looming euro zone rescue and reform measures.
“But Germans remain at heart positively disposed to Europe and have nothing against further integration,” he said. Talk in Berlin of a new treaty comes amid signals that France will support changes to how EU members deal with breaches of the Stability Pact.
According to a paper seen by the Süddeutsche Zeitung, Paris is prepared to allow a simple majority of member states sanction a fellow member in breach of the pact. In its present form, the imposition of sanctions depends on the proposal passing the higher hurdle of a qualified majority with weighted votes.
Leading German MEPs have welcomed the French move but said it doesn’t go far enough.
“We will continue to insist that the measures can only be stopped by a majority,” said German MEP Werner Langen, pointing out that previous pact breaches never led to sanctions. “We are happy that France has moved but it is not yet enough.”
Dr Merkel will discuss measures to improve euro zone crisis management on Monday in Berlin with European Council president Herman van Rompuy.