Financial Times
November 23, 2011
The euro will be “difficult or impossible” to sustain without tighter economic integration and tougher tax and spending rules in the eurozone, José Manuel Barroso, the European Commission president, warned on Wednesday.
Arguing that the fate of the single currency was at stake, Mr Barroso unveiled proposals to curb the fiscal excesses of national governments and introduce a joint “eurobond” to replace national debt issuance.
His proposals will give the European Commission new powers to “assess” and object to national budgets before they are published – a step towards fiscal integration that is seen as a prerequisite to joint “stability bonds”.
Mr Barroso dismissed criticisms that the intrusive measures lack democratic legitimacy, arguing that member states had requested the Commission develop tougher rules that he sees as essential for the survival of the single currency.
“What the crisis has shown now is that without stronger governance it will be difficult if not impossible to sustain a common currency,” he told a press conference in Brussels.
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