Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Friday, October 20, 2017 08:33:50 PM
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 »

Mr Xi`s new vision for China


CHINESE President Xi Jinping has laid out a far-reaching vision for a more prosperous nation and a dominating role for China in the world as the US President Donald Trump is working on a reverse way isolating his country from the world leadership role. In the domestic front he has ...

International »

May to urge EU leaders to speed up Brexit talks


AFP, Brussels :British Prime Minister Theresa May will appeal to European Union leaders at a crunch summit in Brussels on Thursday to push forward the deadlocked Brexit negotiations.At a meeting moved to a new venue at the last minute due to an eruption of toxic gas, May will urge her ...

Cricket »

Rangpur Riders recruit Brendon McCullum


Sports Reporter :Rangpur Riders have recruited wicketkeeper-batsman of New Zealand Brendon McCullum for the up coming fifth edition of Bangladesh Premier League (BPL).Chief Executive Officer of Rangpur Riders Ishtiaq Sadek said to the newsmen, " We have confirmed that McCullum will join our squad on November 15. He will play ...

Entertainment »

Titaan Chowdhury hosting `Sampan`


'Sampan' is one of the popular programmes of Chittagong centre of Bangladesh Television of present time. Dance, music, magic, etc are presented in this show. Popular face of the small screen Titaan Chowdhury is hosting this programme. Positive side is Titaan is hailed from Chittagong. So it becomes easier for ...

City »

BNP Chairperson Begum Khaleda Zia appeared before the Alia Madrasha Special Court in the city's Bakshibazar on Thursday seeking bail on Zia Orphanage Trust and Zia Charitable Trust Graft cases.


International »

Threats to start war with North Korea `dangerous, short-sighted`: Hillary


Reuters, Seoul :  Former U.S. presidential candidate Hillary Clinton said on Wednesday that "cavalier" threats to start war on the Korean peninsula are "dangerous and short-sighted", urging the United States to get all parties to the negotiating table.Clinton also called on China to take a "more outfront role" in enforcing ...

Sports »

U-12 School Handball Tournament begins tomorrow


Sports Reporter :The Atom Gum Under-12 School Handball (Boys' & Girls') Tournament begins tomorrow at the Shaheed (Captain) M Mansur Ali National Handball Stadium.Bangladesh Handball Federation will organize the handball meet under auspices of Pran Confectionary Limited.In this regard, a press conference was held at the Dutch-Bangla Bank Auditorium in ...

Editorial »

Diplomacy must work in Korean peninsula


THE Korean peninsula is closer to war again as a North Korean official reaffirmed on Monday Pyongyang's commitment to developing a long-range intercontinental ballistic missile capable of reaching "all the way to the East coast of the mainland US." He said his country is currently not interested in diplomacy with ...

Entertainment »

Only Sunny Leone could dare to wish Diwali in this unique manner


Sultry actress Sunny Leone who has millions of die-hard fans around the world has come up with a new video and that too in her own style. Sunny Leone has posted a new video in which she is wishing a Happy Diwali, especially to the boys. This video is, in ...

City »

Liberation Affairs Minister AKM Mozammel Haq speaking as Chief Guest at a discussion meeting organised by the BADC Sramik -Karmachari League on the occasion of its 56th founding anniversary of Bangladesh Agriculture Development Corporation (BADC) at its Conference Room yesterday.


Editorial »

Slow down in poverty reduction needs special attention


POVERTY reduction rate in the country is slowing down as calculated from data that to be revealed by Bangladesh Bureau of Statistics (BBS) in few days as per report in a national daily. The yearly average poverty reduction rate was estimated at 1.7 percent from 2005 and 2010 and it ...

International »

US official not ruling out eventual direct talks with N Korea


Reuters, Tokyo :The United States is not ruling out the eventual possibility of direct talks with North Korea, Deputy Secretary of State John J. Sullivan said on Tuesday, hours after Pyongyang warned nuclear war might break out at any moment.Talks between the adversaries have long been urged by China in ...

International »

US 'not taking sides' between Iraqi forces, Kurds: Trump


Washington is "not taking sides" following clashes between Iraqi forces and the country's Kurds, US President Donald Trump said Monday, as tensions escalate following the autonomous Kurdish region's independence referendum.Speaking after Iraqi troops and tanks swept across the northern province capturing oil and military targets from the Kurds and seizing ...

Entertainment »

Deepika the new age Dream Girl: Hema Malini


Deepika Padukone recently made time to launch the biography that was being launched on Hema Malini at a suburban hotel. Hema Malini’s birthday was a big affair for the yesteryear actress as well as her fans, as it saw the unveiling of her biography. The Dream Girl of the golden ...

Entertainment »

Gauri Khan plays a hostto Aamir Khan at Gauri Khan Designs


Aamir Khan recently visited close friend Shah Rukh Khan’s wife Gauri Khan’s store in the suburbs of Mumbai. The actor took out time from the promotions of his upcoming film Secret Superstar to visit the newly opened artistic store which provides imaginative and creative designs and decor. Gauri Khan has ...

 
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