European Central Bank Executive Board member Juergen Stark said euro states will need to “transfer” some control of their economies to prevent another crisis.
“We need a genuine economic union to go ahead with real political union,” Stark told European lawmakers in Brussels. “That means to give up national sovereignty over macroeconomic objectives.”
Stark, who resigned last month in protest over purchases of government bonds by the ECB, also told the parliamentarians that common bonds issued by euro nations will not solve the crisis. Stark said today he expects to stay in office until the end of the year.
http://www.bloomberg.com/news/2011-10-17/stark-says-euro-members-need-to-cede-some-fiscal-sovereignty.html
ECB's top economist warns on euro zone's future
http://www.youtube.com/watch?v=fnVmxzNH4O4
Stark Says Euro Bonds Might be Feasible With More Integration
Oct. 17 (Bloomberg) -- European Central Bank Executive Board member Juergen Stark said bonds issued in common by euro- area members can only work if Europe moves closer together.
“What is at the heart of the euro bond is a different governance structure,” Stark told lawmakers in Brussels today. With deeper integration, “euro bonds seem to be a feasible instrument but it requires a transfer of sovereignty to the supranational level.”
http://www.businessweek.com/news/2011-10-17/stark-says-euro-bonds-might-be-feasible-with-more-integration.html
ECB's Stark: Give up budget sovereignty
The European Central Bank's departing chief economist says that the way to avoid another eurozone debt crisis is much tougher European Union control over nations' budgets and their ability to spend and borrow.
"We need a genuine economic union, or to go ahead with political, real political union in europe," Juergen Stark said Monday at a meeting of the European Parliament's economic and monetary affairs committee.
"So, more Europe is the solution, not less."
http://www.businessweek.com/ap/financialnews/D9QE5UR80.htm
Wednesday, 19 October 2011
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