France is ready to cede sovereignty to its European partners if it helps create greater willingness to share the financial burden of a common currency, European Affairs Minister Bernard Cazeneuve said.
“We are aware that more solidarity needs more integration, so less sovereignty,” Cazeneuve said in an interview in Paris yesterday. “The problem of France is not sovereignty. The crisis is very deep, we want to organize this solidarity in order to be strong in front of the markets.”
French President Francois Hollande has advocated bonds backed by all 17 members of the euro area to help end the region’s sovereign debt crisis. German politicians such as Kurt Lauk have replied that if France wants euro bonds, it should agree to give up power over its own financial affairs in return.
Chancellor Angela Merkel indicated that she would accept euro bonds after deeper political integration in Europe has been achieved, Lauk told journalists in Berlin on June 11. Lauk is a former European lawmaker who heads a business group in Merkel’s Christian Democratic Union.
Cazeneuve said in the interview that he expects euro-area governments to agree on a new system of bank supervision for the 17-member bloc by year end and that agreement will help calm debt markets.
“We are in kind of a transition now,” Cazeneuve said. “The situation in the markets is more difficult now than it will be by the end of the year.”