Commenting on the agreement made yesterday between Chancellor Merkel and the Leadership of the Bundesrat (national representation of the 16 Länder governments) on the ratification of the Fiscal Compact, Guy Verhofstadt, ALDE President in the European Parliament said "Chancellor Merkel has agreed to mutualise debt within Germany between the Länder in order to reduce the high interest rates that some of them are paying on their debts. Yet the Chancellor refuses to consider a similar arrangement at EU level."

"The rules that will be applied to the German federal government and its Länder are the same as for all eurozone governments as enshrined in the Merkel-inspired Fiscal Compact Treaty which introduces greater budgetary rigour in Member States. The logic and the result is the same - everyone benefits from shared solidarity and sovereignty."

"By agreeing to the principle of debt mutualisation for the Länder, Mrs Merkel has at least demonstrated that she understands how it can lead to a reduction of interest rates for more indebted members of the club."

"I can only urge her to accept the same logical solution for the Eurozone at the forthcoming European Council. What is good for Germany can also be good for Europe."