‘Eu­ro­zone should have par­lia­ment, bud­get’

New Straits Times - - Business -

WAR­SAW: The eu­ro­zone should have its own par­lia­ment and bud­get to cap in­equal­i­ties be­tween its richer and poorer mem­bers that could tear the bloc apart, said the Euro­pean Unions econ­omy com­mis­sioner yes­ter­day.

“It’s nec­es­sary to cre­ate a eu­ro­zone bud­get. And this will not be pos­si­ble with­out cre­at­ing a par­lia­ment for the cur­rency union, in or­der to make spend­ing sub­ject to demo­cratic con­trol,” said Pierre Moscovici.

Deeper in­te­gra­tion of the eu­ro­zone is “ab­so­lutely nec­es­sary in or­der to con­tain the di­ver­gence of the economies that make up the cur­rency union,” he said of the 19-coun­try bloc.

“If we con­tinue to have a north that is well off and a south that is in dif­fi­culty, at some point this will re­sult in the re­jec­tion of the Euro­pean pro­ject,” Moscovici added.

Eu­ro­zone mem­ber Greece, with its moun­tain of debt tow­er­ing at 180 per cent of an­nual out­put, was nearly forced out of the com­mon cur­rency be­fore agree­ing to aus­ter­ity mea­sures in ex­change for bailouts.

Moscovici told Rzecz­pospolita that a eu­ro­zone “par­lia­ment and bud­get would also re­quire an ex­ec­u­tive power: a eu­ro­zone fi­nance min­is­ter”.

The Euro­pean Com­mis­sion in­tends to “present an anal­y­sis of fu­ture eu­ro­zone in­te­gra­tion” this to­mor­row be­fore con­sul­ta­tions with mem­bers of the bloc, he said. AFP

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