EMU needs single European government - Welteke

Bundesbank president, Mr Ernst Welteke, said today a single government in Europe will inevitably follow monetary union.

Bundesbank president, Mr Ernst Welteke, said today a single government in Europe will inevitably follow monetary union.

"The single currency does not require a single government but it is my conviction that a single government will follow the single currency", he said.

Mr Welteke did not clarify what powers this government would have, but said it was clear that the single currency must be followed by more political co-operation and integration.

Speaking at the same seminar, ECB chief economist Mr Otmar Issing said he had been "sceptical" about starting monetary union before political union. He added for the moment it appears that monetary union can work without political union.

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AFP