Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Tuesday, July 17, 2018 07:57:40 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

It is time for stronger monetary union

By
06th-Oct-2017       
Comments
Share your thought
Post a comment »
Read all () »

Petros Fassoulas :
He has already been quite vocal about his ideas, although his plans to work with Berlin to strengthen the eurozone following the German elections might have been complicated by the results (and subsequent coalition negotiations).
Nevertheless, Germany remains a key ally, and eurozone reform is of utmost urgency. But Macron faces the danger of losing his footing if he doesn't properly prioritise.
His advocacy for a European Finance Minister and a eurozone budget are essential to strengthening the monetary union, and already has some support from other member states, but vying for an entirely new eurozone parliament and a multi-speed Europe will cloud the debate and weaken the reform effort.
The role of the FDP in the German election notwithstanding, it is possible that the near future will see the creation of a European Minister of Finance in some form or another.
It is one of Macron's central proposals, which German Chancellor Angela Merkel said (prior to the election) she could support, and Commission President Juncker called for the post in his State of the European Union address earlier this month.
This is crucial to increase transparency in decision-making, and will help to make governance and management of financial affairs more democratic. This new post should have strong executive powers and be responsible for both supervising EU budget and economic policies, and for dealing with potential future crises.
Macron's proposal for a eurozone parliament, however, will only serve to further muddy the institutional waters and increase redundancy. The existing European Parliament is well-suited to EMU scrutiny and legislation, which it can perform in conjunction with the proposed Finance Minister.
All EU member states are welcome to join the eurozone and most have a legal responsibility to do so, so MEPs from all member states have a vested interest in eurozone affairs.
To ensure accountability, the Committee on Economic and Monetary Affairs should be strengthened, fully involved in decision-making, and given the role of appointing and dismissing the Finance Minister.
Establishing a eurozone budget should be a priority in future talks. Juncker has opposed it, proposing instead a budget line within the established EU budget, and so Macron should stand strong on this point. Spanish Prime Minister Mariano Rajoy is on board, and Merkel is open to it.
Though Juncker groups it with the eurozone parliament as a parallel institution, a devoted eurozone budget would provide a shock absorber for future upsets, encourage necessary structural reforms in economic policy, and provide an investment opportunity for member states during recessions. The newly-established Finance Minister, working with the European Parliament, would also oversee and manage this budget.
As Juncker has noted, the eurozone will account for 85% of the EU's GDP after Brexit. The gap left in the budget will warrant a complete rethink of EU budget priority areas, and a separate eurozone budget should remain untouched by this overhaul. But cuts should be made with a scalpel, not a hatchet, and priorities should be based on the Future of Europe debates across European institutions. British Prime Minister Theresa May's offer to continue paying into the EU budget through 2020 could buy some time - it should not be taken for granted.
Macron and other EMU reformers need to prioritise existing own resources and the creation of substantial new ones. Introducing Eurobonds could provide another form of risk-sharing and common issuance of debt.
Though Merkel has spoken out against common issuance (and the FDP appears against it), her partnership with Macron will provide him (and other member states) with the platform to change her mind. Other new own resources could be combined in different areas to minimize potential flaws and balance their strengths.
Recommending a multi-speed Europe, as Macron does, contradicts the goal of strengthening the EMU. As Juncker said, the Euro is the currency of the European Union, and eventual adoption is one of the tenants of membership and should be the ultimate goal.
The process of deepening and further integrating the Monetary Union requires all member states to get involved - their proposals need to be a part of the discussion. For a group of "avant-garde" members to move forward without the rest would widen the gap between eurozone and non-eurozone member states, and would detract from
the efforts toward stabilisation.
I remain optimistic about the future of the EMU. Much of what is on the table can be vital to a deeper monetary union and an all-inclusive, integrated, future-proof eurozone. Macron and Merkel could be a powerful team, but ambitious reforms will necessitate domestic compromises and require the involvement and support of all member states and other stakeholders.
What is at stake is far too important, and achieving it will require the input and buy-in of all member states and representatives of society at large - business, trade unions, NGOs, and all those that strive for a better, united Europe.
(Petros Fassoulas is Secretary-General of European Movement International).

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Govt`s pragmatic step is needed to save Bangladesh from adverse impact of global warming


A RECENT study has shown that Bangladesh is among the countries 'most at risk' as over one billion people in the world are lack of air conditioning and refrigeration to keep them cool and to preserve food and medicines while global warming increasing temperatures. More electricity demand for fridges, fans ...

Football »

Harry Kane wins Golden Boot


England captain Harry Kane has won the Golden Boot after finishing as the World Cup's top scorer with Croatia's Luka Modric winning the Golden Ball for being the player of the tournament.Belgium midfielder Eden Hazard was the second-best player, with France forward Antoine Griezmann third.His French team-mate Kylian Mbappe won ...

Football »

Luka Modric (left) poses with the Golden Ball with Kylian Mbappe holding his Young Player Award on Sunday.


Entertainment »

Mamo, Mehazabien together


Entertainment Report :Zakia Bari Mamo and Mehazabien Chowdhury came to showbiz from the common platform. Both of them have common respect to each other. They won the hearts of many viewers by virtue of presenting their acting skills in last Eid works. Directors can easily rely on them. In last ...

City »

President candidate of a faction of BFUJ Molla Jalal, among others, at a journalists' rally organised by 'BFUJ Nirbachane Dabi Adai Sangram Committee'at the Jatiya Press Club on Monday demanding declaration of BFUJ election result.


International »

Gaza mourns teenage boys killed in Israeli air raid


Al Jazeera News :Umm Luay zooms in on a photograph on her mobile phone and kisses the screen, again and again.In the photo, her son, Luay Kaheel, is seen smiling alongside his friend, Amir al-Nimra. The two teenagers, 16 and 15 respectively, died on Saturday minutes after an Israeli air ...

Editorial »

Nobody could enjoy freedom to foil peaceful movement of students


ONCE again, the activists of Bangladesh Chhatra League (BCL) yesterday assaulted some students and teachers of Dhaka University to foil their human chain programme at Central Shaheed Minar demanding release of three quota reformists. The reformist leaders Jashim and Moshiur were shown arrested in a case filed for the attack ...

City »

HT Imam, Political Adviser to the Prime Minister was present as Chief Guest at a discussion meeting marking the 2oth founding anniversary of the Ministry of CHT Affairs at Cirdap Auditorium yesterday.


International »

N Korea, US hold talks on war dead repatriation


AFP, Seoul :North Korean and US military officials met at the inter-Korea border Sunday to discuss repatriation of the remains of American troops killed during the Korean War, a report said.Returning the remains of the US soldiers who perished during the 1950-53 conflict was part of a deal signed by ...

Football »

Belgium players celebrate after Thomas Meunier`s goal gave them an early lead in the third-place playoff against England.


Sports »

After baby steps, Serena plans giant leap in Wimbledon final


Serena Williams was reduced to tears by her daughter Olympia's first steps at Wimbledon, but now the seven-time champion is planning a giant leap of her own in Saturday's final against Angelique Kerber.Just 10 months after giving birth, Williams can complete an incredible comeback as she bids to become the ...

Editorial »

UN-Myanmar deal cannot remain secret : We must not undermine UN efforts


The Transparency International Bangladesh (TIB) on Monday claimed that a secret deal has signed between the United Nations and Myanmar over repatriation of Rohingyas staying in Bangladesh. The Memorandum of Understanding was signed between the Myanmar government and UN's two offices -- UNDP and UNHCR. TIB somehow seems not happy ...

International »

White House official who favored more refugee admissions is out


Reuters, Washington :A White House official who supported higher numbers of refugee admissions to the United States and clashed with immigration hard-liners in the Trump administration left her position on Thursday, two U.S. officials with knowledge of the departure said.Jennifer Arangio, a senior director at the White House National Security ...

City »

International Society for Krishna Consciouness brough out a rally in the city on Saturday on the occasion of Rathyatra, a religious festival of the Hindu Community.


Entertainment »

Kajol has an interesting role in Helicopter Eela


Three years after her last release Dilwale, Kajol is all set to return to the big screen after with Pradeep Sarkar's Helicopter Eela. The actress will be seen playing a possessive mother in the film. She gives up her dream of becoming a singer to raise her only child. Her ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news