Barroso: Full economic union vital to save euro

FULL economic union is essential for the survival of the euro, European Commission president Jose Manuel Barroso said in his annual state of the union address that concentrated on resolving the economic crisis.

He laid the blame for the current debacle firmly with the eurozone governments and their failure to agree a clear strategy and exercise leadership, and depending on inter-governmentalism rather than the EU’s institutions.

“We are now facing the greatest challenge our union has ever seen,” he said. “If we do not integrate further, we risk breaking up.” He added the crisis was financial, economic and social, as well as one of confidence.