The central bank presidents of Germany and France, Jens Weidmann and François Villeroy de Galhau, have called for a common treasury for the euro area. Europe was given the high deficits and imbalances “clearly at a crossroads, Weidmann and Villeroy de Galhau wrote in a commentary for the Süddeutsche Zeitung . In the post, the day before the Franco-German Economic -. and finance Ministers in Paris appeared, the two central bankers speak at the same time in favor of a comprehensive reform of the monetary union
both advocate that the euro countries “to a considerable extent sovereignty transmitted and powers to the European level “. a closer integration is the obvious way” to restore confidence in the euro area “. for this purpose, they call for the creation of a joint Treasury building an efficient and less fragmented European administration and the formation of a stronger political body that makes decisions and be subject to parliamentary scrutiny. “These new institutions could ensure to restore the balance between accountability and control,” they write.
calls for a European Ministry of Finance are not new. So already had the Board Member of the European Central Bank (ECB), Benoît Cœuré, presented concrete proposals. Such a ministry could prevent fiscal imbalances and manage crises in the euro area, he stressed. Also, ECB President Mario Draghi is to stand behind the demands. French President François Hollande had spoken in favor of a European economic government to respond quickly to crises.
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