Germany yesterday insisted that its European partners must undertake the politically fraught process of changing European Union treaties, or accept a binding new eurozone accord, to stabilise the single currency and restore the confidence of investors.
On the eve of a European summit in Brussels to stem the eurozone crisis, a senior German government official dismissed the suggestion by Herman Van Rompuy, European Council president, that tougher fiscal discipline could be enforced without formal treaty change.
“A number of actors have not understood the seriousness of the situation,” the German official said, warning that a “bad compromise” of small steps or “little tricks” would not meet the expectations of the public or the financial markets.