The debt crisis in Europe is now fully systemic and will require a systemic response to resolve it, the president of European Council, which represents EU member states, said on Wednesday.
"The trouble has become systemic. We are witnessing a full-blown confidence crisis," Herman Van Rompuy said in a speech to a conference of EU ambassadors.
"Some may blame it on the irrationality of the market. But it's a fact and we need to confront it."
He said dramatic steps had been taken by euro zone leaders over the past 18 months to try to contain the crisis, but it was not enough.
"Today we are getting to the core of the matter. It is this: the systemic crisis needs a systemic answer. We need a significant step forward towards a real economic union commensurate with our monetary union."
That call mirrors signals from Germany and France that they want to move much more quickly and with more determination towards a fuller fiscal union in the 17 euro zone countries via a change of the EU treaty. But such a step will require sacrifices on the part of member countries, Van Rompuy said.
"Regardless of whether there will be treaty change or not: both entail a sacrifice of sovereignty in exchange for providing the economic and monetary union with a structural credibility," he said.
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