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Is this the kind of "supranational institution" you would allow the EPP to set up?
"Would it go too far if we envisaged . . . giving euro area authorities a much deeper and authoritative, say in the formation of the country's economic policies if these go harmfully astray?" asked Mr Trichet, suggesting "a direct influence, well over and above the reinforced surveillance that is presently envisaged?"


The central banker's boldest suggestion was a "new concept" for the euro zone that envisioned cases of "compulsory" intervention from EU leaders and the ECB in "major fiscal spending items and elements essential for the country's competitiveness".


"Confronting the challenges of the future requires strengthening the institutions of economic union - the `E' in EMU," he said. "Would it be too bold, in the economic field, with a single market, a single currency and a single central bank, to envisage a ministry of finance of the Union?"

In Mr Trichet's view, this EU finance ministry need not administer a budget but monitor directly fiscal and competitiveness policies. This ministry could ensure closer integration of financial services across the EU and sit on boards of international financial institutions.

No, thanks.

Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Tue Jun 7th, 2011 at 06:22:12 AM EST
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