Friday February 27, 2015 Search
Weather | Athens
11o C
6o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Draghi calls for closer economic cooperation in Europe

By Jack Ewing

FRANKFURT, Germany — The president of the European Central Bank, Mario Draghi, said Wednesday that countries in the eurozone should be compelled to take steps to improve the performance of their economies in the same way that they are already required to observe rules on government spending.

At a time when many voters and political leaders are complaining about what they see as the overbearing power of the European Union, Draghi called for more integration rather than less in a speech in London on Wednesday.

Countries that lag behind economically are a risk to their eurozone partners and should be required to change their policies, Draghi said.

“There is a case for some form of common governance over structural reforms,” Draghi said, according to a text of his remarks. “This is because the outcome of structural reforms — a continuously high level of productivity and competitiveness — is not merely in a country’s own interest. It is in the interest of the union as a whole.”

Draghi has frequently called for eurozone governments to take steps to improve growth, such as making it easier for companies to hire and fire workers, removing bureaucratic obstacles to starting a business, and rolling back regulations that limit competition.

But it was the first time that Draghi proposed that such changes become an obligation for eurozone members. Countries in the currency union are supposed to observe rules on government budget deficits and total debt, though the rules have often been flouted.

As an example, Draghi noted that the World Economic Forum ranked Finland third in the world in terms of global competitiveness while Greece ranked 91. “The persistence of such differences creates the risk of permanent imbalances,” Draghi said.

Draghi did not say exactly how common rules would be created or enforced. But he alluded to a “supranational body” like the International Monetary Fund that would push for economic reforms.

Benoît Coeuré, a member of the Executive Board of the central bank, delivered a similar message during a speech in Athens, Greece, earlier Wednesday. Eventually, Coeuré said, countries should transfer some responsibility over public spending to a European authority, part of what he referred to as a new social contract.

But Coeuré added that such a step would be possible only “after growth has resumed, unemployment and inequalities have receded, and economies have sufficiently converged.” [The Associated Press]

ekathimerini.com , Thursday Jul 10, 2014 (10:40)  
Piraeus plans are coming in next few weeks
Slowdown in tourism bookings from Germany
Economy grew by 1.3 pct in Q4 of last year
Gov’t plans tax on foreign-based funds
Tsipras unveils coalition´s first bills, due next week
Prime Minister Alexis Tsipras set out on Friday his government’s immediate legislative plans, while at the same time insisting he would continue to pursue debt relief and refuse to sign a th...
Berlin clears extension as lenders ramp up pressure
There was strong backing in the German Parliament on Friday for the extension of Greece’s loan agreement but reports suggested that the country’s eurozone partners would continue to keep up ...
Inside News
SOCCER
Ten-man Olympiakos couldn´t overcome Dnipro
Olympiakos drew 2-2 with Dnipro from Ukraine at home on Thursday, playing almost the entire second half with a man down, to bow out of the Europa League, despite facing an opponent which on ...
BASKETBALL
Greens lose at Maccabi but preserve head-to-head advantage
Panathinaikos suffered its third loss in eight games at the second stage of the Euroleague going down 73-70 at Maccabi Tel Aviv on Thursday, but has preserved its better head-to-head record ...
Inside Sports
COMMENTARY
A breath of opportunity
We are still living in the Greece we know: The government is struggling to explain its retreat in the face of our creditors, the opposition (including dissidents in SYRIZA) smells blood, we ...
EDITORIAL
Give the green light
Foreign investment is a crucial component of economic recovery and Greece needs to start bringing it in fast. Instead, the government, like others before it, is scaring it off in a bid to sa...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Piraeus plans are coming in next few weeks
2. Slowdown in tourism bookings from Germany
3. Economy grew by 1.3 pct in Q4 of last year
4. Gov’t plans tax on foreign-based funds
5. BoG recommends specialized entity for bad loans
6. Tsipras unveils coalition´s first bills, due next week
more news
Today
This Week
1. Tsipras reversal draws Greek sympathy as party rumblings rise
2. German MPs begin debate on extending Greek bailout program
3. Gov't official: bill reinstating ERT, rehiring staff to go to Parlt on March 5
4. German lawmakers approve extension of bailout program for Greece
5. Restive Bundestag to approve Greek bailout extension
6. Gov't adviser suggests Greek MPs could vote on deal in separate bills
Today
This Week
1. Greece prepares extension request for eurozone approval
2. Time for Alexis Tsipras to keep his nerve
3. Stubborn but not almighty
4. Greek bailout deal faces review by euro officials next week
5. Greece says eurozone deal won time as cash bled from banks
6. The ignorance of the West about the culture of Islam
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.