Mieux gouverner l’Europe
E. Balladur, Le Figaro
February 17 2010

EU member states, in agreement with the ECB, have decided to help Greece in exchange for promises of reforms and a clean up of the nation's finances. The measures are specific, and are to be adopted with urgency. Once this phase is over, the next step will be to create a system that will be able to bring to completion the straightforward currency union established by the Maastricht Treaty. The eurozone offers no protection to its members if their level of instability is too great. Eurozone membership cannot be restricted to the management of the currency, but must also include the economic management of the member states. There is no point playing with words by juxtaposing growth and deficit. Without wishing to deny growth, it must be admitted that cutting the budget deficit and reducing debt are absolute priorities. Another controversy that must be avoided is whether we should create a European economic government. The economy of the eurozone will maintain its dynamism only if the single currency is supported by coordinated economic and budgetary policies. The time has come for the eurogroup to step in to approve governmental financial plans before the respective governments submit them to their national parliaments. It is not a matter of going into the details of every single measure: assessing the global volume of public spending will suffice. The eurogroup will be called upon to assess the validity of the figures that are presented. A decision will be reached with a qualified majority vote by the members of the eurogroup. It will be the “real” second step of the economic and monetary union.