Courtesy of Mish.
On Saturday, Spain’s prime minister Mariano Rajoy Asked For a Eurozone Fiscal Authority, in effect the “Fiscal Nannyzone” that I have spoken about on numerous occasions.
Spain on Saturday proposed the set up a new fiscal authority in the euro zone which would control and harmonize national budgets and manage the European debts.
Prime Minister Mariano Rajoy said the authority was the answer to the European debt crisis and would go a long way in alleviating Spain’s woes as it would send a clear signal to investors that the single currency is an irreversible project.
“The European Union needs to reinforce its architecture,” Rajoy said at an event in Sitges, in the north-eastern province of Catalonia. “This entails moving towards more integration, transferring more sovereignty, especially in the fiscal field.
“And this means a compromise to create a new European fiscal authority which would guide the fiscal policy in the euro zone, harmonize the fiscal policy of member states and enable a centralized control of (public) finances,” he added.
He also said the authority would be in charge of managing European debts and should be constituted by countries of the euro zone meeting strict conditions.
Obama Seeks End to “Crisis Cloud”
Bloomberg reports Merkel Rejects Debt Sharing as Obama Urges End to Crisis Cloud
German Chancellor Angela Merkel hardened her opposition to joint debt sharing in the euro region as President Barack Obama singled out Europe’s leaders for not doing enough to stop the financial crisis.
With Europe’s debt crisis cited last week for canceled IPOs, weaker-than-expected Chinese manufacturing figures and a rise in the U.S. jobless rate, Merkel rejected joint debt issuance in the 17-nation euro area as a solution, saying “under no circumstances” would she agree to Germany-backed euro bonds….
