Tuesday, December 18, 2012

running Solana on the way EU integration should happen




































Among other "Brookings-Scholars" Javier Solana had been asked on different areas of the European integration and its progress. His answers give a good clue on the steps that should follow each other in that progress towards a total union. Interestingly enough he changes the steps of the query (From 1,2,3 to 3,2,1), not caring about questions 4-6. Where the other scholars give long, expansive answers, Dr. Solana does not really reflect on the questions given, but rather fastly recommends his programm (as if having no time for such analysis, must have a lot to do these days, I thought a retired gentleman would have more time available, but no the GENTLEMAN IS RUNNING!!):

-on banking union (Question 3)
Question to scholar: In order to make the Eurozone a viable currency union in the long term, 
European leaders need to make progress towards a banking union. The four features such a 
banking union should include, according to most analysts, are Eurozone-wide: regulation, 
supervision, deposit guarantee fund, and bank resolution mechanism.  On a scale from 0 to 
100%, how far along do you estimate the Eurozone to be in building a banking union?

Solana"It is a three step project. The correct order is banking union in the first place, fiscal union in the second, and finally the political union. "

-on fiscal union: (Question 2)

Question to scholar: In order to make the Eurozone a viable currency union in the long term, 
European leaders need to make progress towards fiscal union, an objective that includes fiscal 
convergence among national budgets, a regime of centralized surveillance and enforcement of 
budget rules, It could include, as well, two even more controversial features: mutualization of 
debt and fiscal transfers in the form of a common budget. On a scale from 0 to 100%, how far 
along do you estimate the Eurozone to be in achieving the desirable level of fiscal union?


Solana: "This is the main debate these days. The right percentage remains unclear."

-on political union: (Question 1)

Question to scholar: In order to make the Eurozone a viable currency union in the long term, 
European leaders need to make progress towards political union, both to strengthen its 
governance and remedy its executive deficit, and to ensure democratic accountability. On a 
scale from 0 to 100%, how far along do you estimate the Eurozone to be in achieving the 
necessary level of political union to be consistent with a very resilient Eurozone? 


Solana: "The final step."


http://www.brookings.edu/research/interactives/2012/brookings-eurozone-survey
http://www.brookings.edu/~/media/multimedia/interactives/2012/eurozone/eurozone_survey_report



stay tuned!
farmer

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