Greece bailout not negotiable, says Angela Merkel The election occurring amid calls for further fiscal union in the eurozone. Benoit Coeure, an executive board member of the European Central Bank (ECB) said that a European banking union could help revive money markets by restoring confidence in the creditworthiness of banks and governments. Mr Coeure called for closer integration as "uncoordinated national reactions to heightened uncertainty could be collectively lethal to the single market for capital." Jose Manuel Barroso, European Commission president, said he believed a banking union could be in place within a year, but Germany says it will not support one unless it is preceded by fiscal union within the eurozone. Mariano Rajoy, the Spanish prime minister, agrees. In a speech earlier to day he said that the eurozone needs greater fiscal and political union if it is to survive the financial crisis. Mr Rajoy said that the country's businesses, banks and regional governments were struggling get access to finance, leading to crippling borrowing costs. He urged further integration in the European banking sector, but did not detail plans. "Europe has to transmit to the world that the euro is an irreversible project," Mr Rajoy said. He also accepted that Spain needed to stand firm in reducing its fiscal deficit. "We cannot live beyond our means on a permanent basis," he said. We cannot have double the number of airports as Germany, for example. Spain secured a €100bn (£80bn) rescue lfor its banking system last weekend, but its borrowing costs have continued to rise, prompting fears the country may follow Greece and need a full-blown bailout.