Hollande to Merkel: Political union comes after banking, social unions

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French President François Hollande has put the brakes on a German-backed "political union", saying it should only be considered after the 2014 European elections and could not happen before there is agreement on creating banking and "social" unions.

In a long interview with French daily Le Monde, Hollande acknowledged that two-speed Europe had now become a reality, with the 17 eurozone countries going for deeper integration at its core.

Looking ahead to future reforms, Hollande said "this eurozone must take a political dimension," responding to calls by German Chancellor Angela Merkel to establish a "political union" and calling for monthly meetings of heads of state from countries sharing the single currency.

But Hollande also sent a clear message that France will not bow to German demands for greater political integration – and a new treaty providing for more centralised controls over debt – without new "solidarity" mechanisms in Europe.

"Political union comes afterwards. It is the step that follows the fiscal union, the banking union, the social union," Hollande said, adding that any moves towards a new European treaty should come at the conclusion of a process of integration that also includes a social dimension.

Asked when he envisioned such a "political union" taking place, Hollande said: "After the 2014 European election," adding that "the aim of [the election] will be the future of the Union."

Hollande also appeared to criticise Germany for dragging its feet on EU proposals for a banking union, which is seen as one of the pillars of the strategy to save the single currency.

"It has not escaped my notice that those who are most eager to talk about political union are sometimes those who are most reticent about taking urgent decisions that would make it inevitable," Hollande said.

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