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Leaders want eurozone 'government' Rompuy as Emporor

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Author Topic: Leaders want eurozone 'government' Rompuy as Emporor  (Read 71 times)
Lisa
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« on: August 16, 2011, 12:17:18 pm »

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Leaders want eurozone 'government'
August 16, 2011
Germany and France have proposed a eurozone government
The leaders of France and Germany are pushing all 17 nations that use the euro to enshrine balanced budgets in their constitutions and want greater collective governance of the eurozone.

French President Nicolas Sarkozy said he and German Chancellor Angela Merkel want a "true European economic government" that would consist of the heads of state and government of all eurozone nations.

The new body would meet twice a year and be led by EU president Herman Van Rompuy.

Sarkozy and Merkel presented their proposals after meeting in Paris amid signs of economic slowdown and after an exceptionally turbulent week on financial markets prompted by concern about Europe's financial health.

Sarkozy and Merkel also pledged to harmonize their countries' corporate taxes in a move aimed at showing the eurozone's largest members are "marching in lockstep" to protect the euro. Both leaders stressed their commitment to defending the common currency, a cornerstone of integration on the continent.

The pair suggested the new body would meet twice a year and more in times of crisis, with Rompuy leading it for a 2-year term. After that, Sarkozy suggested, it could be opened up to other heads of states and government.

The move appeared a step toward the closer long-term economic integration that many analysts have said is inevitable to make the euro experiment survive, though it was unclear how much effect it would have in the short-term.

"There has to be a stronger coordination of financial and economic policy" to protect the euro, Merkel said. She stressed that the crisis built up over several years by the actions of several member states, and there is no solution to tackle the crisis within days.

"We will regain the lost confidence," she said. "That is why we go into a phase with a new quality of cooperation within the eurozone."

But the two leaders ruled out issuing common government debt in the form of eurobonds, at least for now, despite demand by many investors for such a bold but politically difficult move.

http://news.aol.co.uk/main-news/story/leaders-want-eurozone-government/1903227/

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