Merkel argues that there will be no fiscal union without political union in the first place.
The three could be right but it seems that Hollande gives a more effective solution: to let the ESM inject unlimited money into banks through the ECB, which would become the European supervisor.
None of these ideas will appeal too much to Merkel. There are two weeks left until the next European Council meeting.
The idea is very well exposed today by Wolfgang Münchau in the Financial Times: “What happens if Merkel does get her way?”