CHANCELLOR ANGELA Merkel has reaffirmed Germany’s commitment to the EU and the euro, insisting both remain “close to the heart” of Germans despite the euro zone’s “sins of the past”.

Dr Merkel said Germany would continue to show “the kind of solidarity that we showed many times in the last year”, but that the single currency’s stability was best secured by a “mix of solidarity and solidity” in all member states.

“I’d like to say here and now that Germany is aware of the importance of the euro and Germany is committed to the euro,” said Dr Merkel in a keynote address in Singapore.

As an exporting nation the euro had contributed hugely to Germany’s current economic strength in recent years.

However, she said the euro zone at present lacked “established mechanisms to resolve conflicts of interest between member states”.

“National egos . . . have to step into the background for good. If that doesn’t succeed, then it comes at a cost to all member states long-term.”

Dr Merkel’s clear, firm rhetoric follows growing criticism in Berlin and other European capitals that she was not communicating clearly Germany’s priorities and policies in the euro zone crisis.

For her audience in Singapore, and those following in Europe, Dr Merkel repeated Germany’s insistence on linking financial assistance to measures to improve public debt and competitiveness in member states.

Her remarks dovetailed with those of Jean-Claude Trichet, president of the European Central Bank, who followed Dr Merkel yesterday as recipient of the Karlspreis. The award for services to European unity is named after Karl the Great or Charlemagne, the 8th century king of the Frankish empire.

After delivering his remarks as ECB president, the soon-to-retire bank chief allowed himself an excursion into the wider future of Europe. He suggested the future of the EU and its “stable and credible” common currency depended on “all nations engaging fully in the European historical endeavour” though a closer “confederation of sovereign states”.

He warned of the dangers of failing to explain to younger generations the achievements behind the prosperity they take for granted. In this context, he made a call for a stronger institutional framework. “By institutions I do not mean technocrats making complex decisions remote from citizens. I mean the rules and organisations that preserve our core values and guide our actions towards the common good.”