Scathing reaction from German opposition

GERMAN OPPOSITION parties have said Franco-German EU summit proposals contribute nothing to solving the immediate euro zone crisis.

The opposition Social Democratic Party (SPD) was scathing, saying proposals for treaty change would take at least a year to realise.

“These proposals are neither practical nor will they do anything to solve the current crisis,” said Axel Schäfer, SPD member of the Bundestag EU committee.

Green Party leader Claudia Roth said the Franco-German proposals, “agreed in a back room”, were no substitute for a democratic intergovernmental convention.

“Europe is hanging from a thread and Mrs Merkel and Mr Sarkozy are driving it to the wall,” she said. “Europe is not the Europe of the French and German leaders.”

Left Party deputy leader Sahra Wagenknecht said the proposals, in particular automatic sanctions for deficit-rule breaches, would cause “irreparable damage” to European democracy.

“For too long now the people of Europe have put up with Berlin’s castigation,” she said. “This forced rescue policy is wrong: it doesn’t save countries, rather banks and private creditors.”

The parliamentary party of Dr Merkel’s Christian Democrats (CDU) welcomed the package and said Berlin would not stand in the way of boosting euro zone crisis funds through the IMF.

“If the IMF says it needs more money, then it’s up to the Bundesbank to decide this in Germany’s case,” said Mr Michael Meister, the CDU’s parliamentary finance spokesman to Bloomberg.

“It’s not for lawmakers nor Dr Merkel’s government to decide or to interfere.” The party would “have a problem if political pressure was openly brought to bear on the bank, not with its decision”, he said.