European leaders are edging closer to a federal union in response to the financial crisis engulfing the Continent.
In crisis talks yesterday, Britain and the US joined forces to urge Germany to create a central Brussels body that could assume sovereignty over individual countries’ budgets and fiscal policies.
Their fears were aired yesterday in a conference call between finance ministers from the G7 group of leading nations.
Four EU leaders have been asked to draft proposals for a deeper eurozone fiscal union, to be presented to an EU summit at the end of this month.
They insist the Government must seek a mandate from voters to demand that key powers are repatriated from Brussels to Westminster in exchange for agreeing to treaty changes that would allow eurozone countries to pool sovereignty.
Read more: Leaders plotting EU superstate: 'Fiscal union' looms... with the Germans in charge | Mail Online