BRUSSELS (MNI) – The Eurozone’s credibility can be boosted by
better enforcement of the EU’s economic rules, European Commission
President Jose Manuel Barroso said on Tuesday.
The euro has come under pressure, shedding around 12% of its value
since the beginning of the year, as investors worry about high debt and
deficit levels in the currency bloc and how these could weigh on growth.
Barroso told lawmakers in the European Parliament that Europe
should capitalise on the momentum created by the sovereign debt crisis
to strengthen economic governance.
“What is at stake is the future of the euro,” he said, adding that
the 16 Eurozone members “share a common good called the euro and it will
not be acceptable that the behaviour of one member state will put at
stake all the others.”
“We are ready to do whatever it takes to defend the euro and the
stability of our common currency,” he said.
He said he was pleased with the work done on economic governance so
far and that the EU could work within its current legal treaties to
boost the rules.
Legislative proposals will come as early as September, Barroso
said, adding that the EU needs the “credibility that comes with
enforcement.”
“This is not just about macroeconomic prudence, it’s also about
growth,” he said. “For the first time we have a comprehensive approach,”
he added.
Barroso said his Commission was playing a strong role in pushing
for full publication of bank stress tests and that he had made a “strong
plea” to Europe’s leaders.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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