The German minister of economics and technology, Philipp Rösler, has told reporters that the EU should create a new institution, a “stability council,” of unelected supervisors that would ensure that member-states stick to budget temperance, limit debt, and keep the growth of debt in check.
Rösler’s proposal echoes elements of the EU’s Euro-Plus Pact, which covers competitiveness and national and fiscal rules. This pact was floated by Angela Merkel and Nicolas Nicolas Sarkozy.
The “stability council” would be given the power to impose sanctions on countries to make sure they cut their deficits and would monitor the use of financial assistance. The plan would also require that a German-style “debt brake” be written into national constitutions. A provision inserted into the German constitution in 2009 forbids politicians to borrow beyond 0.35 per cent of gross domestic product.
The new body would also be empowered to carry out “competitiveness tests” among euro-zone states to see if labour market policies are sufficiently competitive. “If you fail them, there should be consequences,” he said.
The stability council would be independent of voters so as to avoid “political pressure” and could impose sanctions automatically.
Rösler said that Germany would be bringing the proposal to the next meeting of EU finance ministers, where, no doubt, they will face the wrath of the strangely silent Michael Noonan.People’s Movement · 25 Shanowen Crescent · Dublin 9 · www.people.ie · 087 2308330 · post (at) people (dot) ie