Wednesday, November 9, 2011

Europe close to creating ‘budget tsar’

Financial Times
November 9, 2011

Europe is moving toward the creation of a “budget tsar” with expanded powers to scrutinise national governments’ finances after the European Commission handed new authority to its top economics official.

Under the new arrangement, rival commissioners would have limited means to challenge the decisions of the commissioner for economics and monetary affairs - a post currently held by Finland’s Olli Rehn - when it comes to ordering member states to rein in spending.

Their ability to challenge Mr Rehn’s decisions to launch disciplinary proceedings against profligate governments, including possible sanctions, would also be curtailed.

Commission officials argue that the new changes are necessary to prevent national governments from exerting pressure on their commissioners, who are supposed to defend the European interest as opposed to the national one.

“We’re basically turning this into the way we deal with mergers and competition policy where you give much more autonomy to the commissioner,” one Commission official explained.

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