Merkel calls for "Political Union" to resolve EU crisis

German Chancellor Angela Merkel Thursday called for more EU "Political Union" in resolution of the financial problems experienced by some of its nations. "We need not just a currency union; we also need a so-called fiscal union, more common budget policies. And we need above all a political union," Merkel told ARD public television. The Chancellor's consistent message during the Eurozone crisis indicated austerity as a cure to Europe's financial issues, insisting that "budget consolidation and growth are two sides of one and the same coin" and supporting a budget-discipline agreement called the fiscal compact. Sustainable growth could only come from fostering the competitive positions of all EU members, Merkel added. "We must, in each European country, confront our respective weaknesses," Merkel said.