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With 46.2% of youth unemployment in Spain, the EU President Van Rompuy favor German position to solve Europe´s problems.

Europe Security News.- Van Rompuy (President EU) favor more european integration and fiscal discipline than printing money to sustain deficitary budgets. Photo Credit Europa Press

The European Council President, Herman Van Rompuy has called for greater transfer of sovereignty to the EU by Member States to correct the current imbalances and the need of achieving a monetary union “stronger and more stable.”

“Youth unemployment in July reached 20.7% in the whole EU, with less than 8% in Austria and the Netherlands compared to 46.2% in Spain. Such differences are unacceptable in a monetary union,” said Van Rompuy in a speech.

To reduce unemployment and overcome the current phase of economic slowdown, the European Council President has advocated for more austerity and closer EU.  He argued that the problems of growth in the euro area are based in fiscal imbalances, the credit crunch and lack of confidence. “Deficit spending can not therefore be the answer to the current situation,” he said.

As regards to the debt crisis, Van Rompuy has admitted that the measures taken so far are not sufficient. “The negative developments in financial markets during the last week and the economic forecasts show that we need to do more,” he noted.

“The eurozone must move towards genuine economic union in line with monetary union. We must give both our citizens and markets a clear message about the irreversibility of the euro”, stressed Van Rompuy.

In his view, deepen economic union requires two elements: a significant strengthening of the rules and mechanisms of fiscal responsibility and a greater integration of economic policies in Europe.

“Clearly, this will involve a transfer of sovereignty in some areas in exchange for a monetary union that will be stronger and more stable,” insisted Van Rompuy.