Eurozone Debt Crisis: Will it Lead to The United States of Europe?

The agreement outlined early Thursday morning by the 27 European Union heads of state includes rough plans for a new fiscal body for the euro zone designed to prevent another spreading debt crisis the likes of which Europe has seen over the past 18 months.

From the decisions made at the summit overnight, the euro zone has taken a baby step toward becoming one superstate. Fiscal and monetary policy will be shifted to a centralised Euro Summit that will be held at least twice a year following meetings of the European Council.

The agreement says: "Euro Summits will define strategic orientations for the conduct of economic policies and for improved competitiveness."

Although details at this early stage are not completely clear, there is a mention of a strong presidency.

"The President of the Euro Summit will be designated by the Head States of Government of the euro area at the same time the European Council elects its President and for the same term of office."

Members of the EU who are not a part of the Euro, which include the UK, will not be invited into the meetings and will be subsequently informed by the president.

There is also a clause which suggests the president could be "full-time" should existing members choose to have a permanent representative in Brussels affecting fiscal policy from a central location.

"Clear lines of responsibility and reporting between the Euro Summit, the Eurogroup and the preparatory bodies will be established," the agreement said.

One central voice

Plans also suggest that the president would be a rallying figure, similar to that of the president of the United States, communicating the central euro zone message to the financial markets.

"The President of the Euro Summit shall be responsible for communicating the decisions of the Euro Summit and together with the ECFIN Commissioner shall be responsible for communicating the decisions of the Eurogroup."