'Step up the pace'

Former German Chancellor Gerhard Schröder gave his own views on the way forward for Europe in an interview with the German news magazine Der Spiegel - and even had some praise for current Chancellor Angela Merkel.

In comments published on the magazine's website on Saturday, Schröder said Brussels needed to quicken the pace on establishing a federal style of European government - at least as far as the economy is concerned.

"We have going to have to relinquish national sovereignty," said Schröder, referring to domestic economic policy. "The European parliament should become the highest authority for whatever power is given up by national parliaments."

Schröder said a "special committee" should be set up with membership from all European countries to take control of matters such as the economy.

Merkel's former rival for the chancellorship, Schröder avoided direct criticism of current German foreign policy.

Indeed, Schröder welcomed efforts by Merkel and French President Nicolas Sarkozy in the direction of a common economic government.

While Schröder - who was chancellor when Greece joined the eurozone - said there had been initial mistakes in the Merkel government's handling of the Greek sovereign debt crisis, he preferred to offer constructive criticism.

It was important "to stop dithering but instead to be more serious about the core of Europe."

Criticism for UK's stance

Otherwise, Schröder said Europe and its individual nation states would "sink into insignificance." He also attacked the position of Britain within the European Union.

"Great Britain causes the biggest problems," Schröder said.

While the country was not a member of the single currency, London still maintained an interest in shaping the debate over the economic economic zone, he said.

"The two things do not go together," said Schröder, calling for a clear recognition that Europe had an "inner core" of countries.

"Concrete decisions about the organization of any economic governance can only be made by eurozone members and not by the whole of the EU council," said Schröder.

Schröder's comments followed criticism by two former chancellors, Helmut Kohl and Helmut Schmidt, of the way that Germany now appeared on the world stage. Kohl claimed Germany now appeared unreliable to its international allies, while Schmidt criticized Merkel and Sarkozy's handling of the eurozone crisis.

Author: Richard Connor (AFP, dapd)

Editor: Sean Sinico