June 3, 2011
European Central Bank President Jean-Claude Trichet, setting out a vision for the future of the euro, proposed deeper intervention in the economic policies of euro-zone countries struggling with debt crises and floated the idea of a common European finance ministry.
In a speech accepting the Charlemagne Prize for European unity, Mr. Trichet said the "union of tomorrow" could include veto power for European institutions over national budgets, and even a common finance ministry to shape countries' economic policies.
Mr. Trichet's bold ideas are unlikely to prevail anytime soon. His repeated pleas for a "quantum leap" in the enforcement of fiscal discipline were rebuffed last year by national governments eager to keep their powers to set economic policy. Smaller euro-zone countries balked at a plan by France and Germany early this year that would have imposed common economic measures to improve competitiveness.
Still, Mr. Trichet's remarks reflect a growing sense that Europe needs greater political integration if it is to make the euro work. "Confronting the challenges of the future requires strengthening the institutions of economic union," he said.
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