Brussels, 08/06/2012 (Agence Europe) - The European Economic and Social Committee (EESC) organised a conference on Thursday 7 June on the sovereign debt crisis and whether the EU should prepare to set up a budget stability union? EESC president, Staffan Nilsson, believes that such a budget union, backed by eurobonds, is the next step in overcoming the debt crisis and greater European integration is required to pool risk.
Sylvie Goulard, a member of the European Parliament's economic and monetary affairs committee and rapporteur on budget surveillance in the eurozone, said that Europe needed more than a budget union. She called for a budget union financed by self-standing EU taxes and possibly the transfer of some spending to EU level, such as defence spending. She encouraged people in Europe to realise that some things can be done better at EU level.
Stuart Holland, a professor of economics, said the solution is to set up eurobonds guaranteed by countries. He said that eurobonds issued by the European Investment Fund and co-financed by the European Investment Bank could help recapitalise the banks. The European Central Bank could be responsible, along with the EIB, for supervising bank recapitalisation. Holland said there were suggestions that this idea had the support of the president of the ECB, Mario Draghi, because it would take pressure off the ECB.
Holland said a bank union was not needed and suggested that the president of the Eurogroup, Jean-Claude Juncker, consider using enhanced cooperation to introduce eurobonds. Juncker said he would look into it. (EL/transl.fl)