"The fundamental question is relatively simple. Do our partners really want more Europe, or do they just want more German money"
- government official in Berlin
German Chancellor Angela Merkel is pressing for a central authority to control euro area finances, or so-called European finance ministry, and major new powers for the European Commission, European Parliament and European Court of Justice.
Until European governments agree to these steps and the unprecedented loss of sovereignty they involve, Germany will refuse to consider initiatives such as joint euro area bonds or a "banking union", officials say.
"The more that other member states get involved with this development and are prepared to give up sovereign rights to get European institutions more involved, the more we will be prepared to play an active role in developing things like a banking union," a German official familiar with the discussions told The Wall Street Journal. "You can't have one without the other."
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