FRANKFURT (MNI) – Eurozone countries have the tools they need to
deal with macroeconomic imbalances, European Central Bank Executive
Board member Lorenzo Bini Smaghi told the European Parliament on
Wednesday.
In response to criticism from deputies that the ability to manage
those imbalances through interest rate policy had been taken away from
individual states with the advent of the single currency, Bini Smaghi
told members of the Committee on Economic and Monetary Affairs that he
could think of a “series of measures, starting with taxation policy.”
“I don’t think it’s appropriate to say member states don’t have the
instruments,” he asserted, adding that they could also use wage policy.
“Monetary union entails giving up sovereignty on money matters but a lot
of sovereignty remains in the member states.”
[TOPICS: M$$EC$,MT$$$$,MGX$$$,M$X$$$,M$$CR$]
