Angela Merkel calls for national budget veto

Talks during EU Summit

Angela Merkel has called for the EU to be given the power to veto member states’ budgets.

The German Chancellor said the economics commissioner should be given clear rights to intervene when national budgets violated the bloc’s rules.

The aim is to agree first on joint banking supervision, with the European Central Bank playing the lead role, but the UK – the EU’s main financial centre – wants safeguards to protect the powers of the Bank of England.

The banking union proposal has brought urgency to the talks, with the EU’s executive Commission, the ECB and several states including Spain and France wanting its legal basis to be in place by January.

© 2012 SAT Telecommunications Ltd.

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