German Chancellor Angela Merkel said that it is only when “risks are reduced” that a eurozone banking union can be agreed upon, during a press conference following a meeting of Christian Democratic Union (CDU) and Christian Social Union (CSU) party leaders in Frankfurt.

The German Chancellor also insisted on full parliamentary control of the euro, saying “for us it is clear that the ESM is always under parliamentary control of the national parliaments. The ESM is an intergovernmental institution.”

Merkel’s comments come as some EU officials push for the transformation of the European Stability Mechanism (ESM) into a European Monetary Fund.

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