Arguing the euro project will be “difficult or impossible” to save from break-up without eurozone countries giving up some fiscal control, Mr Barroso backed intrusive European Commission powers that countries must accept if they are to reap the economic benefits from joint “stability bonds”.
However, Angela Merkel remained resolutely unimpressed, describing the Commission’s decision to propose eurobonds as “extraordinarily inappropriate” and “troubling” in the midst of a crisis. Ms Merkel argued it was wrong to suggest that “collectivisation of the debt would allow us to overcome the currency union’s structural flaws” – a concern echoed by the Netherlands and Finland, two other triple-A-rated eurozone members.
Mr Barroso nevertheless struck an optimistic note, claiming Berlin’s reservations were primarily over timing. “Reality is a great teacher”, he added, referring to how EU countries dropped their opposition to beefing-up the eurozone bailout fund. “Member States agreed to what they said they could never agree to.”
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