The EU heads of state and government have tasked their Finance Ministers, a common Budget for the Eurozone. Whether there will be such a Budget ever, but it is completely unclear. Several countries do not want it actually. The ESM bail-out Fund for countries in crisis should also be strengthened. And the reform package also includes a rescue Fund for banks. the Alexander Mühlacher, Brussels Alexander Mühlacher
Alexander Mühlacher is Europe correspondent of the süddeutsche Zeitung in Brussels.
on Twitter, send an E-Mail
Of all the proposals which the President of France, Emmanuel Macron wanted to trigger an awakening in Europe, to follow, not much is left. On Friday, the heads of state and government placed the EU Finance Ministers, although the order to work on a Budget for the Euro-Zone – but whether it will actually come about is open. The debate at the Euro-summit in Brussels has shown once again how controversial and an Extra budget.
“I am no friend of the Euro-zone Budgets”, said Federal Chancellor of Austria, Sebastian Kurz, the country until the end of the year, the EU holds presidency of the Council. There is an overall EU budget and, therefore, he believe that it is also necessary to create a Budget for the currency Union, said Short. This would cost the taxpayers more money.
The Austrian was not alone. Those eight EU countries have joined in the “Hanseatic League”, to see the project is extremely critical. The Netherlands had already set at the level of the EU Finance Ministers through the medium of a Euro-zone budget may not be in economic Distress States. Macron had requested a function for the stabilization, found no majority.
the purpose of The budget is, “to strengthen the competitiveness and to promote the convergence between the member States,” said German Chancellor Angela Merkel. The important thing is that now, an agreement has been found, the 27 EU were able to agree to States. Also the French President, was therefore quite satisfied that this was managed, the Chancellor reported to the deliberations.
Until recently, it was mainly from the Non-Euro countries in resistance against plans for an Extra Budget for the currency Union. Countries such as Poland and Hungary, which are among the largest beneficiaries of the EU budget, feared that they might in future receive less money from the community Fund. At the end of the government in Warsaw with the summit decisions, however, Reportedly it is expected in Poland anyway that it will ever come to a Euro-zone Budget. Finally, it should be part of the EU’s total budget – and the need to adopt all of the member States, acting unanimously.
the Future of the rescue Fund should also help during Unwinding of ailing banks
If it comes to a budget for the Euro-Zone, will decide in the negotiations on the next EU budget framework for the years 2021-2027. Then should be about the size spoken. The call from Macron, the use of several percentage points of gross domestic product, proved to be illusory. For comparison: In the EU budget, the member States pay a percentage of their economic output. Out of this money is now to be fed, the Euro-zone Budget. In the spring, the Details of which are to be clarified.
At their summit meeting, the heads of state and government in addition, the Euro-reform package that had been agreed by the Finance Ministers. Thus, the rescue Fund, the ESM should, in the future, a stronger role in the design and Monitoring of credit programmes for countries in crisis. As the International monetary Fund (IMF) is likely to involve little more on European aid packages to evaluate the ESM itself, the debt sustainability of States, in order to ensure that loans can be repaid.
The rescue Fund will, in the future, can also be used in the resolution of failing banks. The ESM is the so-called backstop (Backstop) is docked for the Bank resolution Fund the SRF. This is to be filled up to the year 2024 from the banks with a 55 billion Euro. This is to prevent the taxpayer must be liable for Bank failures. This pot of money is not sufficient, and should provide the Backstop for the Euro countries, and a further 60 billion euros.
