Brussels, 05/06/2012 (Agence Europe) - The German chancellor, Angela Merkel, and the president of the European Commission, José Manuel Durão Barroso, discussed ways of strengthening Economic and Monetary Union (EMU) at a meeting on Monday 4 June 2012 to prepare for the 28-9 June European Summit. Shortly before the meeting, Merkel said that in the eurozone at least, more Europe was needed, rather than less. She called for the European Commission to be given greater budget powers, adding that the budget and growth pact (currently being updated) was an important step forward but far from enough in itself. The world wants to know how the eurozone will be organised in the future, she said.
Barroso commented: “We have to make a distinction between what we can do in the short term and what we can do in the medium-long term. For the longer term, it is important to tell citizens and investors world-wide that we will do everything to ensure the stability of our currency. That is why we need to speak about the future of our union trying to complete the monetary union with an economic union. That is why the EC in this debate will be for a structured and ambitious approach that may include what we can call a banking union. Some elements of this banking union will be more integrated financial supervision, more integrated deposit guarantees, and it is important to have this more long term vision about more Europe'.
Growth. The two leaders talked about the European Growth Agenda that is to be submitted to the European summit for approval. It includes increasing the EIB's capital by €10 billion, making better use of unused structural fund cash, launching the project bonds pilot phase and implementing recent European Commission recommendations on national reform and stability programmes. Merkel said they would need to look at focusing the multiannual financial framework (the EU's five-year budget) on spending to increase competitiveness. “To achieve growth, we need sound public finances. That's why fiscal consolidation indispensible. We need competitiveness. That's why structural reforms are also indispensable. And we also need targeted investment. On this line we are making a proposal for growth”, said Barroso. (MB/transl.fl)