September 16, 2011
Polish Finance Minister Jacek Rostowski has described proposals for tighter economic policy coordination in the euro zone as "stale." In a SPIEGEL ONLINE interview, the former economics professor pleads for a true European economic government and warns that the common currency will fail without reforms.
SPIEGEL ONLINE: Everybody acknowledges the need for greater coordination of economic policies in Europe. The question is whether there should be an economic government comprised of all 27 European Union member states or whether it should just be within the 17 euro-zone countries?
Rostowski: Everything that can be done within the 27 states should be done there. Those things that have to be done among the 17 but do not need to be considered among all 27 can be handled by the euro-zone members. Sometimes, however, it seems there is a tendency on the part of some euro-zone members to exclude the other 10 EU countries because that might make decision-making easier. That can only be acceptable in situations where it is absolutely necessary for the proper functioning of the euro zone.
SPIEGEL ONLINE: As a country which is not a member of the euro, would you not object to a two-speed Europe ?
Rostowski: It is quite clear that we need a great deal more macroeconomic integration within the euro zone. We are very much in favor of that, as is the United Kingdom. The reason is very simple: If we do not have greater macroeconomic integration, then we face a high probability of the dissolution of the euro zone. That would be an absolute catastrophe for everybody. Not only for the deficit countries within the euro zone, but also for the surplus countries where unemployment world soar to levels not seen since World War II. It would also be a catastrophe for the other EU members who are not part of the common currency. Given that choice, we are definitely in favor of greater macroeconomic integration.
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