European Union Will Have Own Economic Government

Best Growth Stock – If falls Portugal, Spain would be the next piece, except that it has such weight that can tear down the building of the euro. The European Commission considered that the creation of an economic government for the euro area that meets regularly and has a president, as proposed by Germany and France, would create a political leadership “more stable and strong.”

“A format (to meet) regularly and frequently to the summit of the eurozone, with a permanent president, contributes to a more stable political leadership and strong,” said the president of the European Commission Jose Manuel Barroso, and Commissioner European Economic and Monetary Affairs Commissioner Olli Rehn said in a statement.

Barroso and Rehn held a working meeting today in Brussels and Paris after a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy, greeted as a positive step Franco-German proposals under the joint effort of the euro to strengthen the governance of the area.

The proposals, said, “represent an important political contribution to this debate and the ongoing work by the leaders of the two largest economies in the euro zone.”

“The challenges we face have further demonstrated that a common currency implies a shared responsibility and requires closer coordination of economic policies,” they said.

In this sense, Barroso and Rehn appreciated especially the proposal by Sarkozy and Merkel to create “a genuine economic government” in the euro zone, made by a council of heads of State and Government will meet twice a year.

The two leaders announced their desire that the European Council president, Herman Van Rompuy, assume the permanent presidency of that body, which will last two years.

Meanwhile, Barroso and Rehn considered that the initiative of the “golden rule”, a bill which provides for anchoring mid-2012 in the Constitution the obligation to set goals to achieve a balanced budget, “is the cornerstone the Stability and Growth Pact “of the European Union, as this ensures the budgetary discipline of the Member States to prevent the occurrence of excessive deficits.

“We have proposed a substantial strengthening of standards and compliance,” a measure that should be completed in September and adopted together with the European Parliament, Barroso and Rehn said about it.

“The call for embodying the principle of the” debt brake “in the Constitution is another strong political commitment to the sustainability of public finances in the long term,” he added.

Sarkozy and Merkel, that will bring further economic policies by establishing in 2013 a common corporate tax, also propose the creation of a tax on financial transactions, something that the Commission has reflected.

“The tax on financial transactions is a key instrument in ensuring that the financial sector contribute more fairly balances the public,” said Barroso and Rehn.

The European Commission intends to present “soon” about a proposal, as had already announced.

Finally, the president of the Commission and the European commissioner pledged to work with European Council President and the Eurogroup Chairman Jean-Claude Juncker, to make a success of the current debate on governance and develop in the coming weeks proposals.