France and Germany may be moving towards closer political union
Last year Germany went out on a limb by calling for political union in Europe. The idea was met with little enthusiasm elsewhere in the eurozone, but particularly in France from Nicholas Sarkozy. ... But the mood has since changed and serious plans are underway to create – if not a full political union – then something close to it.
Watching the evolution from the inside is Thomas Wieser, an Austrian economist who prepares the regular meetings of the eurozone finance ministers. "There will be consultations with the member states in the second half of September in Brussels and I think you will be surprised in the autumn by the degree of movement that will have taken place in some member states,” he tells this website.
EU council president Herman Van Rompuy and others are drawing up a paper to upgrade the eurozone, which will be discussed by EU leaders at a summit on 18-19 October. It will include elements for a political union, but also for a fiscal union - surrendering more budgetary powers to Brussels - considered key for the survival of the single currency.
One of the key steps along the way is the creation of a eurozone-wide banking supervisor under the authority of the European Central Bank. Wieser believes that if such a supervisor had been in place five years ago, the euro-crisis would already be over.
http://euobserver.com/economic/117367
This move towards a closer political and fiscal union in Europe may not happen at this October meeting, but it is an interesting possibility. France and Germany are the two biggest countries and economies in Europe, as well as historical enemies. The degree to which they can coordinate their politics and fiscal policies will be important for the direction the continent heads in.