Today's FT sports an interesting analysis regarding chancellor Merkel's politics to solve the Eurocrisis by Quentin Peel (p. 7 of the print edition). He states that Mrs Merkel has developed private plan since July 2011:
- Member states must cede (some) power step by step to Europe
- Binding budgetary rules: ceilings for borrowing and budget, spending priorities to ensure growth and competitiveness, coordination of taxes, probably jointly guaranteed eurobonds.
- Direct election of the Commission president, to overcome the disconnection between national politics and the European parliament
- Since she will face substantial resistance domestically and abroad (also by Germany's main ally France), she will move cautiously and only unveil the plan step by step
