Dijsselbloem is willing to expand euro-zone, but gradually, without forcing any country
The euro crisis became an existential crisis in full-blown when he revealed formidable difficulties of eurozone to wear Great Recession. Brussels just to draw an ambitious plan to reform euro top to bottom: so that next crisis will not return to cause havoc in european project. Jean-Claude Juncker, head of European Commission on Wednesday proposed that all EU countries join euro quickly, rescue Mechanism (Esm) to become a European Monetary Fund with capacity to extinguish fires, to direct a superministro of Economy, which in addition to chairing also Eurogroup and eurozone has a budget crisis. The Eurogroup, informal Tallinn (Estonia) has revealed today first reactions policies in foreign affairs: not so fast, mr. Juncker.
The euro we will always have persecuted warnings that no one takes seriously. The whole of Europe is aware of need to have an institution equivalent to ECB in plane of fiscal policy, which could be that European Monetary Fund with artillery to deal with serious crises. And all of Europe knows that one of great fractures of Union is gap between eurozone countries and countries that do not share single currency: it is much more difficult a divorce as Brexit if countries share ir currency. The plans of Juncker go through to address se two lines of failure to prevent future earthquakes: to expand eurozone quickly and by a FME powerful. Berlin and Paris were wearing a couple of days dancing dance of caution. But Eurogroup (meeting of Finance ministers of euro) has been more direct, with a flurry of declarations which in practice is a bucket of cold water on proposals of Commission.
- “Spain does not need anor labour reform, although he says Brussels”
- Juncker: “In Europe, hit by force of law, not law of strongest”
- Juncker calls to make a leap forward in european integration
- Juncker proposes that eu member states are in euro and Schengen in 2019
- Brussels boosts its own Monetary Fund to prop up euro
“The enlargement of euro has to be a natural process, gradual, without forcing anyone,” he assured president of Eurogroup, dutchman Jeroen Dijsselbloem. “If eurozone and banking union work I am sure more countries will want to join,” he added. The problem that argumentario is that none of that ends up working. The eurozone has taken almost a decade to recover levels of GDP pre-crisis, and continues with numbers of unemployed fishermen. And banking union is incomplete (re is no deposit guarantee fund or fiscal support to resolution fund to close banks) and also does not work, as demonstrated by differences in treatment between people's Bank and entities of Italian.
The Eurogroup believes that, to enter into eurozone is not simply mechanism of financial and technical assistance proposed Juncker. Beyond that political momentum that you want to print, Brussels, ministers plead for do comply strictly with convergence criteria for entering euro (related to inflation, exchange rate and state of public finances) so as to avoid a new Greece. And re numbers don't add up. The uk and Denmark opted by referendum to stay away. And not a single one of countries that could ask you for a hypotical access to euro (Bulgaria, Romania, Czech Republic, Poland, Croatia and Hungary) met.
Brussels has spoken: now it is turn of Paris and Berlin; and of those who send really. After German elections next week, French president, Emmanuel Macron, is scheduled to reel off ir plans about future of euro. Germany and France will be after Italy and Spain to draft a plan more precise throughout fall. No one expects anything even remotely as ambitious as what you want to Juncker: Berlin will transfer to some of requests for Macron, as a budget –not too bulky— and also is willing to create a European Monetary Fund, but that could take away budgetary surveillance by European Commission and to demand reforms and restructuring of debt before you come to rescue of countries in trouble. Germany, in short, raises give even more strength to a regime intergovernmental (send States more than institutions) with flexiausteridad that characterized last years in Europe by flag. And in this political battle only Brussels dares, for moment, to take him to contrary.
"There is a Europe political and economic stronger and able to act," said Finance minister of German, mighty Wolfgang Schäuble, who intend to repeat if Angela Merkel repeats as chancellor. "How do you do it? That is most urgent task", has been questioned. The answer, after 24 September: following German elections, which today more than ever, are european elections.
Guindos applauds (with nuances) plans of Brussels but emphasizes budget of euro
The priority of Spain is not that all EU countries join euro. Or a European Monetary Fund, or a superministro of Finance, didn't even complete banking union. The minister Luis de Guindos has assured today by end of Eurogroup of Tallinn that what is most urgent, in opinion of Spanish Government, it is "a budgetary instrument common of eurozone to act against asymmetric shocks". Silver: a budget crisis.
Guindos aligns with France's Macron, with European Commission and with rescue Mechanism (Esm) in that request. They have even started to circulate some figures: Esm considers that firepower of fund to be counter-cyclical should be between 1% and 2% of GDP of euro zone: between 100,000 and 200,000 million euros, nothing less. The problem is, as always Berlin: Germany does not accept those figures or far away. Just a tenth, perhaps a twentieth part of those figures, according to think tank Eurasia Group.
"The approach to English is that countries must continue to make reforms, but also to improve institutional framework. It is essential to complete banking union. You can run a European Monetary Fund. And Brussels does well to remember that euro is currency of EU and eurozone should continue to expand, but it needs a budgetary instrument" to fight against crisis. Spain raised last spring that this could be a fund-crisis or even unemployment insurance in europe, but sources from ministry of Economy suggest that in order to do this it is imperative that Germany agrees, something that in this moment it is not insured. Guindos, in end, supports –with nuances— plans of Juncker, but at same time it aligns itself with some of ideas of Berlin: Economics, for example, it looks not bad that new FME strip to Committee on fiscal oversight. "We would have to see how it's done" point sources ministry with delicious ambiguity. In an interview with this newspaper, Guindos was clearer just a year ago: I'd be in favor of German proposal "if this change is accompanied by a greater fiscal integration and measures to share risks".