* June 28-29 EU summit part of gradual process, Merkel says
* Will not "decide the big throw" on fiscal integration
* Merkel says two-speed Europe already a reality
BERLIN, June 7 German Chancellor Angela Merkel
played down expectations on Thursday that a European summit at
the end of the month could produce a master plan for the future
of Europe but said it would come up with an agenda to integrate
"I don't believe that there will be one single summit that
will decide the big throw," Merkel said in an interview with ARD
public broadcasters to be aired later on Thursday.
"But what we have been doing for some time, and on which a
working plan will certainly be presented in June, is to say we
need more Europe," she added.
European leaders will devote the summit in Brussels to
discussing closer integration and more central power to manage
euro area finances.
Expectations are mounting in financial markets that the
summit could come up with more than a general path towards a
formal accord a year from now.
Merkel, who has said repeatedly the way ahead was "more
Europe, not less", said that did not just include a currency
union but also a fiscal union, joint budget policy and a
"That means in the future we will also have to hand over
competencies to Europe step by step and give Europe
opportunities to control," Merkel said.
Merkel said closer integration in some parts of Europe -
such as in the euro zone currency bloc and the Schengen area of
free movement - would lead to a two-speed Europe.
"We already have that in different areas today," she said.
"Whoever is in a currency union, will have to get move closer
together. We have to be open to make it possible for everyone to
participate. But we cannot stand still because some do not want
to go with us," she said.