Frankfurt, Germany - European head of the Central Bank insisted on tighter control EU spending by national Governments to strengthen monetary union against future and even crises proposed the creation of a single Ministry of finance for the 17-nation bloc.
Jean-Claude Trichet has proposed allowing officials of the European Union make decisions spending for countries in financial difficulty if - as the Greece - they have already been rescued and omitted to make progress on reducing their deficits.
"A way this could imagine is for the European authorities have the right to veto some decisions of national economic policy," Trichet said. "The mission could include major posts tax expenditures and the essential elements for the competitiveness of the country."
With the test of integrity of the euro zone debt crisis, Trichet suggested that the only outcome is a closer union of economic policies between the countries of the euro. He even suggested that the euro could in the coming years to have its own Department of supranational finance.
Trichet, who leaves office when his mandate expires on 31 October, made remarks Thursday at Aix-la-chapelle (Germany), that he accepted the City International Charlemagne Prize, recognizing service for unification European.
Proposals for Trichet looking to the future of Europe long term, since they would require a change much time in the basic Treaty of the European Union. But his remarks were a reference in a timely manner to the situation of the Greece.
The Greece took a rescue ($158 billion) European billion last year, but did not meet its deficit and revenue goals. Officials of the Union European and Greek are discussing the terms of a possible second rescue to avoid as the country default on its debts.
Ireland and the Portugal also have need of eurozone Rescue Fund redemptions and the Monetary Fund International.
Trichet said that the only way to protect the common currency of exceedances by Governments is to make a "quantum leap" by strengthening the rules against the excess debt and deficit limits. A series of previous rules are for is ineffective, as they ignored by Governments.
The European Union is working on a set of proposed new rules, but Trichet said that they are not strong enough to prevent individual countries bad habits of others is in difficulty and urged Parliament to strengthen the proposal.
He said "Is looking today in the euro area, we can see clearly that countries which respect the rules of the single currency can flourish and prosper,". "But we also see the contrary." The countries who have not lived in the letter or spirit of the rules have experienced difficulties. Through the contagion, these difficulties have affected other countries "in the monetary union."
"Strengthen rules to prevent unsound policies is therefore an urgent priority."
Greece have had problems over the years of too spent, with bond assuming market lenders that its accession to the euro meant it was a good risk. When he ran into financial difficulty, however, Greece suddenly found that he could no longer borrow on the capital markets.
Longer term, he said, Europe should consider creation of a Ministry of finance in the euro area which would be standing above national ministries and the police.
He would not have a big budget funded by tax revenue, and the national ministries, but would instead monitor the economic performance of countries and keep an eye for the budgets that go off track or economies who lose competitiveness. It should also to the financial regulations of the euro-wide zone.
"In this Union of tomorrow or day after tomorrow, it would be too bold, in the economic field, with a single market, single currency and a single Central Bank, to consider a Ministry of Finance of the Union?" He declared.
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