Employers federations call for more integration

(PARIS) - The French, German and Italian employers' federations on Saturday appealed for greater European integration, calling for a new treaty to get over "the current shortcomings of the euro zone."

"So that the foundations can be laid for a prosperous and politically strong 21st century Europe, we call on the European Union to start work on a new treaty, which would be a new step towards closer political and economic union," France's Medef, Germany's BDI and Italy's Cofindustria said.

In their statement, they called for "solid public finance", competitive economies, "political commitment" and "a stronger Europe."

Calling for measures already agreed by European leaders to be implemented rapidly, they stressed that "the question of adequate capitalisation of banks is a condition for the solution of the current crisis and must be treated as such by political leaders."

The new treaty which they are calling for must, among other things, "turn the European Stabilisation Mechanism into an independent fund, which will be able to operate according to clear and transparent rules."

The mechanism is due to replace the EU's rescue fund, the European Financial Stability Facility, by 2013 at the latest.

The employers' appeal for greater European integration comes as European countries are battling a sovereign debt crisis, which is having a knock-on effect on banks and rattling the financial markets.

"There is no reason why the real economy should plunge back into crisis. The real world economy is intact. Many European businesses are world leaders in their domain. Global economic prospects remain full of promise," the federations said.

"Europe and the eurozone are not the only causes of the deep crisis of confidence which is affecting the international financial markets, but they play a part. Faced with this situation, Europe must commit itself resolutely to restoring confidence," they added.