Economic policy

Central bankers claiming € -Ministry of Finance

Europe is in crisis also because of the economic imbalances between the States. The Central bankers of Germany and France have thoughts about possible countermeasures.

Jens Weidmann (article, left) and François Villeroy de Galhau claiming a common Finance Ministry for the Euro-area. Europe to stand in the face of high deficits and economic imbalances “clearly at a crossroads,” they write in a commentary for the “Sueddeutsche Zeitung”.

In the contribution, the day before the German-French economic and Council of Finance Ministers in Paris on Tuesday appeared to speak out in the two Federal Reserve Bank presidents at the same time for a comprehensive Reform of the monetary Union. Both of them argue that the Euro countries “a considerable degree of sovereignty and powers transferred to the European level”.

More efficient administration and stronger political body

A stronger Integration is the obvious way to confidence in the Euro area to recover, my, Weidmann and Villeroy de Galhau. In addition to a common Ministry of Finance suggest an independent Fiskalrat as well as other institutional changes.

So it is to your liking in the future a more efficient and less fragmented European administration, and a stronger political body to give, the decisions and the parliamentary control. These new institutions could ensure that “the balance between liability and control to restore”, it says in the post.

gri/ago (dpa, rtr)