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Original article in the Guardian:

Eurozone crisis: United States of Europe may be the only way to save euro | Business | The Guardian

Merkel appeared to be calling not only Hollande's but France's bluff. By announcing there could be no censorship of the eurozone to-do list, she meant tabling radical, federalist steps involving gradual loss of national sovereignty over budgetary, fiscal, social, pensions, and labour market policies with the aim of forging a new European political union over five to 10 years.

I'm all in favour of federalism. NOT if it means a forced march under German hegemony to neoliberal "reforms" that will create increased inequality between and within countries, contrary to the principles Germany has already signed up to in European treaties.

by afew (afew(a in a circle)eurotrib_dot_com) on Sat Jun 9th, 2012 at 02:56:19 AM EST
[ Parent ]
At this point the Euro may not be worth saving.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa
by Migeru (migeru at eurotrib dot com) on Sat Jun 9th, 2012 at 03:02:59 AM EST
[ Parent ]
Well yes. These principles are so loose that you can interpret them any way you want.

More to the point, is it really federalism we are talking about here? Federalism can't mean taking away powers over budget and legislation from the state parliaments and not giving them to the equivalent institutions on the european level, EP and council either.

No, these proposals look like instituting the worst of german habits - enshrining neoliberalism, giving power to the courts - and french ones - weakening the genuine institutions of the EU in favor of inter-governmental cooperation.  

by IM on Sat Jun 9th, 2012 at 05:11:42 AM EST
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The German government has always been ready to let someone else pick the name for its policies. Be it "Growth enhancing measures" or "Federalism" the contents still haven't changed.

Von überall könnte das Volk, Urbrut alles Undemokratischen, Zelle des Terrors, über die gewählten Hüter von Wachstum und Wohlstand® kommen. - flatter
by generic on Sat Jun 9th, 2012 at 06:01:08 AM EST
[ Parent ]
The eternal german, what?

Come on. You just have to open a history book and see that the german political consent on europe has been pro integration and for a strengthening of common institutions like the commission, the court and the EP for a long time. Of course until recently - until then years ago or so - the Benelux states and Italy were as ardent federalists.

So now, being pro a United States of Europe or a federal european state is a traditional position on european politics in Germany.

The question is if Merkels proposals can be said to be federalism in the traditional sense or if she is just using the old banner for something quite different.

by IM on Sat Jun 9th, 2012 at 06:13:22 AM EST
[ Parent ]
I meant this German government.

Von überall könnte das Volk, Urbrut alles Undemokratischen, Zelle des Terrors, über die gewählten Hüter von Wachstum und Wohlstand® kommen. - flatter
by generic on Sat Jun 9th, 2012 at 07:37:55 AM EST
[ Parent ]

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