FRANKFURT (MNI) – The Eurozone suffers from a “problem of
governance” stemming from the lack of a common economic policy, Spain’s
Finance Minister Elena Salgado said in an interview with the Financial
Times published Thursday.
Salgado also called for better communication within the monetary
union, since “markets punish uncertainty.”
She also stressed that the governance problem was an issue for the
entire Eurozone and not just for one particular member.
“In recent days the attacks of the markets have affected 40 percent
of the Eurozone in terms of GDP,” the minister said. “When there’s a
problem that affects 40 per cent of GDP, it’s a systemic problem, it’s
not a problem of one country or another.”
Turning to the government’s recent plan to privatize parts of the
state lottery system and the airport authority, as well as tax cuts for
small businesses and the termination of financial assistance for those
still seeking aid after two years of unemployment, Salgado said the new
measures would help to spur economic growth and help keep the state in
line with its deficit goals.
“In terms of fiscal consolidation, it’s practically neutral,” the
minister said. “But it still stimulates activity because it encourages
the creation of small companies, and because privatisation also
stimulates activity.”
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