EU Commission President Jose Manuel Barroso has called for the EU to evolve into a “federation of nation-states”.
Addressing the EU parliament in Strasbourg, Mr Barroso said such a move was necessary to combat the continent’s economic crisis.
He said he believed Greece would be able to stay in the eurozone if it stood by its commitments.
Mr Barroso also set out plans for a single supervisory mechanism for all banks in the eurozone.
He called the plans a “quantum leap… the stepping stone to the banking union”.
The European Central Bank would get much greater powers of oversight and regulation of Europe’s 6,000 banks under the plan.
Mr Barroso said said eurozone countries should not rely on bailouts from the ECB, saying the bank “cannot and will not finance governments”.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.