Wednesday April 22, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Europe needs fiscal union first, says Schaeuble

Before Europe launches common bonds or so-called eurobonds, it must first establish a true fiscal union, German Finance Minister Wolfgang Schaeuble said in a newspaper interview Tuesday.

"The government has always said that before we start talking about joint debt management, we need real fiscal union,» Schaeuble told the business daily Handelsblatt.

The topic of eurobonds -- pooling the debt of eurozone member states to drive down borrowing costs -- has split the 17-nation bloc and was the main sticking point at an informal EU summit last month.

Nevertheless, creating a fiscal union was a «medium-term project,» the finance minister insisted.

A first step was the fiscal pact, agreed to by 25 of 27 European Union members and which is designed to shore up the turmoil-hit eurozone by penalising countries that fail to keep their deficits in check.

A banking union, too, would be another stage.

"We should take one step after another,» Schaeuble said.

The path Europe has to take «is not an easy one and it won't always be fair,» he warned.

While Europe's leaders try to come up with a way out of the region's long-running debt crisis, Germany insists there is no quick fix or miracle cure and no way round the hard slog of fiscal consolidation and structural reforms.

France is spearheading a drive for eurobonds, in effect pooling the debt of eurozone countries, in order to raise fresh debt funding.

It and other eurozone states say eurobonds could fund desperately needed growth policies after years of austerity have pushed the economy into recession.

But Germany is firmly opposed to such a move, arguing it takes away the pressure for reform in spendthrift countries and also undermines market discipline.

A banking union has also been suggested by European Commission President Jose Manuel Barroso, allowing all 17 euro-zone countries to share the burden of bank failures.

But Germany, again, believes such a move must be part of a longer process of deeper integration of eurozone budget and financial policies.

Greater integration would give more powers to the European Commission, the EU's executive arm, and effectively require member states to give up significant national sovereignty.

"We don't see now how such considerations would help to overcome the current questions,» a finance ministry spokesman said last week.

"You know the fiscal pact is the beginning of the fiscal union and in the longer term you could imagine stricter oversight,» he added.

"Such questions will certainly be discussed» at a forthcoming meeting of EU leaders in Brussels on June 28-29, the spokesman said. [AFP]

ekathimerini.com , Tuesday June 5, 2012 (15:01)  
Carrot to pay income tax all in one go
IOBE: No agreement would be a huge failure
Haircut on Greek banks’ collateral?
Uncertainty hits bookings from Germany and the UK
Greek PM eyes Merkel support
Prime Minister Alexis Tsipras is to meet with German Chancellor Angela Merkel Thursday in Brussels in a bid to secure a statement of political support from Berlin amid tough negotiations wit...
Mayors resist coalition´s demand to hand over cash reserves
Mayors insisted on Tuesday that they would not allow their municipalities’ cash reserves to be transferred to the Bank of Greece, as the government wants, at least until they have held a mee...
Inside News
BASKETBALL
Second win for the Reds over Barca in four days
Olympiakos is one step from the Euroleague Final Four in Madrid after downing Barcelona on Tuesday for the second time in four days, to edge ahead 2-1 in the best-of-five play-off series. Th...
BASKETBALL
Panathinaikos recovers to beat CSKA for 2-1
Three-pointer master Panathinaikos had the last laugh at the end of Game 3 of its series with CSKA Moscow on Monday winning 86-85 and reducing the Russians' lead to 2-1 in the best-of-five p...
Inside Sports
COMMENTARY
IMF needs to correct its big Greek bailout mistake
The Greek government's mounting financial woes are leading it to contemplate the unthinkable: defaulting on a loan from the International Monetary Fund. Instead of demanding repayment and fu...
COMMENTARY
Tragedy in the Mediterranean
Every time we in the West see yet another video of an atrocity committed by Islamic State or Boko Haram and express our abhorrence, and every time we are shocked to read of a boatload of mig...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Second win for the Reds over Barca in four days
2. Carrot to pay income tax all in one go
3. IOBE: No agreement would be a huge failure
4. Haircut on Greek banks’ collateral?
5. Uncertainty hits bookings from Germany and the UK
6. No leap in relations with Russia
more news
Today
This Week
1. Greek government's popularity takes a hit as talks drag on
2. Tragedy in the Mediterranean
3. No ferries on Labor Day as seamen take industrial action
4. ECB studying curbs on Greek bank support
5. Silence is not an option
6. Two men accused of migrant smuggling face prosecutor over deadly shipwreck
Today
This Week
1. Quarantine for Greek bank subsidiaries in neighboring countries
2. Time to get serious
3. Putting off payments led to Q1 budget primary surplus
4. Obama calls for flexibility in Greek reform talks in brief exchange with Varoufakis
5. Greek government's popularity takes a hit as talks drag on
6. Greece denies report that it is preparing for debt default
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.