Bruges, 27/03/2014 (Agence Europe) - On Thursday 27 March, German Finance Minister Wolfgang Schäuble said he was in favour of having a European commissioner with the power to reject a member state's budget plans and called for a change in the EU treaty as soon as possible after the European elections to boost eurozone governance.
Speaking at an event organised by the College of Europe in Bruges, Belgium, at the fifth European Business Conference, the German finance minister compared the mooted commissioner with Competition Commissioner Joaquin Almunia. Almunia can raise objections if he believes that a measure taken by a government violates EU state aid rules without this being seen as breaching a country's national sovereignty. The idea of a commissioner who can reject a country's budget plans is not so different in Schäuble's view: It is right “to stick to the rules that we have agreed, (…) we are all bound to stick to what we have agreed”.
The European Commission already has a toolbox of strengthened budget surveillance instruments. In its recent report on macroeconomic imbalances, it highlighted Germany for its current account surplus and other surpluses and put pressure on the country to stimulate domestic demand and public investment. Schäuble responded that German exports also create jobs in Europe and the criticisms of low German demand were no longer valid as “we are still reducing our surplus, our contribution to the fact that the eurozone itself is balanced, trade is balanced. Without the German surplus, we would have a deficit”, he pointed out, adding that the Commission also criticised high spending on social security. Schäuble said Germany is criticised whatever it does: “Both ways are criticised. Sometimes I feel like asking Olli Rehn, what shall I do, spend more or spend less?”
To boost the Commission's instruments, Germany wants contracts to be signed between member states and Europe in which countries pledge to implement economic reforms in return for financial aid. Without referring to this directly, Schäuble said the EU's budget could be used “as an instrument for setting priority, (…) and could support structural reforms”. Member states are still divided over this.
Strengthening eurozone governance. Schaüble called for a change in the EU treaty as soon as possible, adding that this could not be done until after the European elections. He said that, if the treaty were changed to boost governance in the eurozone, there would need to be a “bridge” to non-euro counties. Why not set up a eurozone parliament? he wondered. Quizzed about whether a change in the treaty would give the United Kingdom a way out of Europe, Schäuble simply said that, “in the end, the British are reasonable people” who believe that it is in the UK's interests and also those of the EU for the country to remain in Europe.
Changing the treaty would make it possible to shift some intergovernmental agreements to the Community arena. The bank resolution fund (SRF) to be set up as part of the bank resolution mechanism (SRM) is part-governed by an intergovernmental agreements. The European Parliament has strongly criticised this, because it leaves the EP out in the cold. Intergovernmental agreements “are a second base footing, but better than nothing”, said Schaüble, “although in the long term they are not enough”. Schäuble said he was sceptical about the idea of pooling debt in the eurozone, because it would not establish good incentives for investment. (EL)