The head of the MFA calls for more European governance
July 9, 2010
We need more European integration and a new "architecture" of economic governance to reassure investors, said Friday the president of the French Financial Markets Authority (AMF).
Jean-Pierre Jouyet doubts that Germany accepts one day an economic government for the euro area at Heads of State and Government.
The economic governance of the European Union is too complex, with multiple levels of – presidencies of the Commission, Council of the ECB, the Eurogroup, representative for foreign policy, etc.. – And too slow, "he told Reuters.
"Markets do not act against the interests of Europe," said former Secretary of State for European Affairs. "They want politics and governance.When they attest, it is because there are not enough European governance. "
Jean-Pierre Jouyet, the markets can see that today a reluctance EU countries, especially the most important, to make the "leap in integration, however it deems necessary.
He particularly regrets that discussions on the EU budget, which dropped below 1.0% of gross domestic income, does that today a further reduction.
France has rallied in June in the idea championed by Germany of an economic government for 27 and not 16 (member countries of the euro area), as desired by Paris.
Berlin conceded that the Heads of State and Government of the euro area could meet if necessary, as they did repeatedly against the financial crisis and the debt Greek, but formalizing such meetings.
French officials have not lost all hope that one day the idea of an economic government for the eurozone win smoothly.
Jean-Pierre Jouyet, the economic government of the European Union should "naturally" be first "in the zone that is more integrated euro area".
GOVERNMENT AND TO 16 TO 27
"But at the same time, where the Germans are not wrong, is that we have always been a connection between what happens at 16 and what is done at 27," he adds.
The 16 governance must focus on the currency, fiscal discipline and the convergence of economic policies on behalf of monetary solidarity, "he explains.
But a range of topics can be addressed at 27, especially in financial matters – such is the case for the regulation of rating agencies.
In other words, he must, he said, coordination of economic policies more natural in the euro area, accompanied by greater financial integration to 27.
It also calls for clarification of the direction of the Eurogroup, without any necessarily and automatically back to the Heads of State and Government.
"The Germans are reluctant to make that a head of state who directs the euro area," said Jean-Pierre Jouyet.
"And now, if you like it or not, the rules are still very much set by the Germans. Because it is they who finance more, which are in the best economic and financial situation, which will have the responsibility more important as the General Secretariat of the European Council, "he adds.
And it is not impossible that a German successor to Jean-Claude Trichet as head of the European Central Bank, which further emphasizes the chairman of the MFA.
In any event, he believes, the regular summit of Heads of State and Government of the euro area, as desired by France, would require the establishment of a permanent secretariat.
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