Trichet: Political union inevitable

Former European Central Bank President Jean-Claude Trichet said euro-region member states will eventually have to form a political union to integrate fiscal policies.

“I don’t suggest that politically it is possible right now, but I trust” that “the day after tomorrow we need to go further into the direction of a more achieved federation,” Trichet said in London.

“We probably need an even tougher way of dealing with countries that would not behave according to what is required by the stability of the euro area,” he said, adding: “to rely on fines and only fines is not necessarily sufficient”.