Related News
France rejects EU budget plan
By Raf Casert |
September 29, 2010, Wednesday
|
Print Edition
Print Edition
FRANCE clashed with Germany and the European Central Bank on Monday, rejecting any proposal that would punish European Union nations with near-automatic sanctions if they fail to keep their debt and budget deficits within limits.
Instead, French Finance Minister Christine Lagarde said governments should still have the overriding say in any such decision.
She dismissed the idea that a member nation could be reprimanded and penalized for budget excesses by unelected experts alone.
Earlier, EU Monetary Affairs Commissioner Olli Rehn said he will propose today for member states to be punished early for spending their way into trouble.
He insisted sanctions decisions could only be undone by a large majority of member states. France insists that a simple majority should suffice to decide on sanctions.
"The fate of a country cannot be left in the hands of experts alone," Lagarde said as she entered a meeting of top EU finance officials to shape a new set of rules for the euro aimed at preventing another crisis like the one which almost brought the euro currency to its knees this spring.
Greece borrowed its way to the verge of bankruptcy, shaking the foundations of the euro and leading to speculation the currency bloc might break up. The shared currency has rules limiting deficits to 3 percent of economic output, but those rules have been widely ignored.
The panic has eased but officials are still searching for a way to put the euro on sounder footing.
Many say the financial policies were left far too much to short-term political expediency in the past and insist on rock-solid rules to keep spendthrift nations in control.
Lagarde fully backed the EU to move to a more credible financial and budgetary policy, but, she added "from there to go to a fully automatic system, a power fully in the hands of experts? No."
Lagarde specifically had problems with the near-automatic imposition of sanctions, without the political sphere having its say. "The political power, its assessment, must stay in play," she said.
Rehn said today's official proposals should be in force by next summer. He called for speedy approval of the member states and the EU legislature.
Instead, French Finance Minister Christine Lagarde said governments should still have the overriding say in any such decision.
She dismissed the idea that a member nation could be reprimanded and penalized for budget excesses by unelected experts alone.
Earlier, EU Monetary Affairs Commissioner Olli Rehn said he will propose today for member states to be punished early for spending their way into trouble.
He insisted sanctions decisions could only be undone by a large majority of member states. France insists that a simple majority should suffice to decide on sanctions.
"The fate of a country cannot be left in the hands of experts alone," Lagarde said as she entered a meeting of top EU finance officials to shape a new set of rules for the euro aimed at preventing another crisis like the one which almost brought the euro currency to its knees this spring.
Greece borrowed its way to the verge of bankruptcy, shaking the foundations of the euro and leading to speculation the currency bloc might break up. The shared currency has rules limiting deficits to 3 percent of economic output, but those rules have been widely ignored.
The panic has eased but officials are still searching for a way to put the euro on sounder footing.
Many say the financial policies were left far too much to short-term political expediency in the past and insist on rock-solid rules to keep spendthrift nations in control.
Lagarde fully backed the EU to move to a more credible financial and budgetary policy, but, she added "from there to go to a fully automatic system, a power fully in the hands of experts? No."
Lagarde specifically had problems with the near-automatic imposition of sanctions, without the political sphere having its say. "The political power, its assessment, must stay in play," she said.
Rehn said today's official proposals should be in force by next summer. He called for speedy approval of the member states and the EU legislature.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
