No banking union without a fiscal union. That's what German Bundesbank officials are saying today. The Germans are reacting to increasing talk from European officials that a "banking union" is needed: deposit guarantees, a resolution fund for ailing banks and unified regulatory oversight, across the entire 27-nation European Union.
It is a reasonable position: Germany is not going to write a blank check to bail out the banks or the countries of southern Europe unless it has much tighter control over the national budgets of the countries it is bailing out.
The same position was repeated this afternoon by German Finance Minister Wolfgang Schauble, who also reiterated his opposition to eurobonds.
Angela Merkel said the same thing this morning: "We want more Europe," but in return, "we must be prepared to give up national sovereignty."
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