The Spanish authorities wish to get involved in the reflection on the deepening of Economic and Monetary Union (EMU), with the European Commission to unveil a specific reflection document on Wednesday 31 May, in the framework of the process that began in early March with its White Paper on the future of the EU (see EUROPE 11736).
“What we are asking for is what we have always asked for: better governance of the Eurozone including elements of a budgetary union, a banking union in addition to the EMU already in place, and an economic union”, said Alfonso Maria Dastis, the Spanish Foreign Minister, in Brussels on Monday 15 May. When asked about the Rajoy government's strategy to win over Germany, he stressed the coherence of the Spanish approach to the issue.
According to the Spanish government, which has submitted its proposals to the European institution, the Eurozone should be reformed with a greater balance between budgetary responsibility and budgetary solidarity, according to information published the same day by the Spanish daily newspaper El Pais.
Madrid is calling for both strict compliance with the rules of the Stability and Growth Pact and the creation of solidarity instruments such as the Eurozone's own budgetary capacity, managed by a European Treasury, to support countries carrying out reforms. This budgetary capacity would then support investments and productivity gains, and could then be used partially for unemployment insurance.
It is worth noting that Spain has also re-tabled the concept of the partial pooling of the debt of the Eurozone countries through the issuance of Eurobonds. It is also calling for banking union in the Eurozone to be finalised by fleshing out the 'bank deposit guarantee' plank. (Original version in French by Mathieu Bion)