Trichet ECB: several European economic powers next step in the crisis (Reuters)

Aachen (Germany),-(Reuters) - Europe should consider strengthening central control of economic policy if the efforts to deal with its debt crisis does not put results, President of the Central Bank européenne, Jean-Claude Trichet, said Thursday.

By accepting a prize for his contribution to European unification, Trichet set out ideas, including the formation of a European Union Department of finance and a right of veto for the authorities of the EU on spending and other major domestic policy decisions.

"As a first step, it is justified to provide strong financial assistance under a program of adjustment," Trichet said. "But if a country is always step deliver, I think that all would agree that the second stage must be different."

"He would go too far if we considered, at this second stage, giving much deeper euro area authorities and authority say in the formation of the political economic country if these deteriorate mislead."

European policymakers struggle to a new set of aid for the Greece, which should include the fresh new loans, commitments of austerity and privatization rajouteraient, potentially supervised from the outside.

In a speech to Singapore on Thursday, Chancellor Angela Merkel reiterated requests for the Germany for a better coordination of European economic policies.

"In the new concept, it would be not only possible, but in some cases mandatory, in the second step for the European authorities - namely the Council on the basis of a proposal by the Commission, in liaison with the ECB - make their own decisions applicable in the economy concerned," Trichet said.

"Is a way that it could be imagined for the European authorities have the right to veto certain decisions of national economic policy.". This mission could include major posts tax expenditures and the essential elements for the competitiveness of the country. ?

Research in the long term, he suggested that a Department of the Central Finance would be adapted with the existing single market, single currency and the single Central Bank.

Not necessarily a Ministry of finance which manages a large federal budget." But a Ministry of finance which would have direct responsibilities at least three areas: first of all, the monitoring of budgetary and political policies of competitiveness.

"Then, all typical responsibilities of the Executive in what concerns the integrated EU financial sector."

"Third, the representation of the Trade Union Confederation in international financial institutions.".

(Reported by Sakari Suoninen; editing by Patrick Graham)

View the original article here