Merkel wants changes to Europe's Lisbon treaty

GERMAN Chancellor Angela Merkel said today in some of her most dramatic rhetoric since the eurozone crisis erupted two years ago that it was high time for Europe to achieve a “breakthrough” on changes to its ground rules.

Speaking at a conference in Berlin, Merkel said the situation in Europe had become “unpleasant” and the bloc would not survive unless it showed the world it was capable of adapting to the debt crisis that has intensified in recent weeks, sparking speculation of a eurozone breakup.

Her remarks appeared aimed at winning over sceptical European partners to a German push for changes to the bloc’s Lisbon Treaty, rather than a signal that Berlin was ready to consider radical new measures to stem the crisis.

“It is time for a breakthrough to a new Europe,” Merkel said. “A community that says, regardless of what happens in the rest of the world, that it can never again change its ground rules, that community simply can’t survive. I’m convinced of this.”

“Because the world is changing so much, we must be prepared to answer the challenges. That will mean more Europe, not less Europe.”

Italian borrowing costs shot up yesterday despite a promise by embattled Prime Minister Silvio Berlusconi to step down. Europe’s rescue fund is not big enough to cope with a bailout of Italy and the market moves raised alarm bells across the bloc, with Merkel’s spokesman Steffen Seibert admitting they were grounds for concern.

“We are watching developments in Italy with great interest,” he said.