It still is hard to imagine the European Union continuing without membership changes, but deeper integration for the existing members is understandable. Taxing trading transactions is an issue that was raised shortly after the crisis but without a consistent policy across the EU, UK and US it may struggle to succeed.
While some may call it a power grab for more EU power, the current model of a weak central government creates many problems. During a crisis it's much more complicated to find agreement and delivering a consistent policy is going to be a struggle. The Guardian:
France and Germany have set out plans to create the first "true European economic government" headed by a single appointed leader, as part of major moves to synchronise tax and spending to save the failing eurozone.
The French president, Nicolas Sarkozy, and German chancellor, Angela Merkel, announced the dramatic proposals after a two-hour mini-summit. They also called for the imposition of tighter restrictions on member country's deficits and announced a synchronising of the tax policies of their own two countries. Sarkozy has also secured the support of Merkel for a Tobin tax – a financial tax on all international transactions – to raise funds to ease the crisis engulfing the European economy.
The establishment of an economic government for the eurozone will be regarded by eurosceptics as a political power grab for Europe.
