The euro zone should have its own budget, which would be separate from the long-term budget of the wider European Union, draft conclusions of an EU summit to take place next week said.
“For the euro area, the objective is to move towards an integrated budgetary framework,” said the draft conclusions, obtained by Reuters. “In that context, mechanisms to prevent unsustainable budgetary developments, as well as mechanisms for fiscal solidarity, e.g. via an appropriate fiscal capacity, should be explored,” the draft said.
“Such mechanisms would be specific to the euro area and therefore not be covered by the Multiannual Financial Framework,” the draft said. The Multiannual Financial Framework is the European Union’s long-term budget which amounts to around 1 percent of the gross domestic product of the 27-nation bloc. It is used to support the EU’s agriculture policy as well as investment in the EU’s poorer countries and regions, among others.
The idea of a separate euro zone budget is supported by Germany, but many non-euro zone countries, which now benefit from the funds of the EU-wide budget, are concerned that its creation would diminish the amount of money available to them. The conclusions also showed that EU leaders would support the idea of euro zone countries entering into contractual agreements with EU institutions to implement reforms.
“The smooth functioning of EMU (the euro zone) for stronger and sustainable economic growth, employment and social cohesion requires stronger coordination, convergence and enforcement of economic policy,” the draft conclusions said. “In this respect, the idea for the euro area Member States to enter into individual arrangements of a contractual nature at the European level on the reforms they commit to undertake and on their implementation should be explored,” they said.
Copyright © 2015 euronewsMore about:
- 1EU call for unity as Spain and Portugal enter war of words with Greece
- 2Interview: The consequences of Boris Nemtsov’s murder
- 3Female pilot jailed in Russia proclaimed a ‘hero of Ukraine’
- 4Skydiver has lucky escape after seizure at 9,000 feet
- 5Indian rapist says women to blame for being sexually assaulted
- 1‘Blue’ dress causes internet confusion. Is it white and gold?
- 2Tens of thousands march in Moscow in memory of Boris Nemtsov
- 3Putin promises to hunt down killers of opposition figure Boris Nemtsov
- 4Stand-off at ‘anti-Islamisation’ march in north-east England
- 5Japan: Was brutal murder of boy, 13, inspired by ISIL?
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Exclusive: CIA and Mossad are behind Boko Haram and ISIL, says Sudan president | euronews, world news
- 3eurovibes - a selection of Europe’s best music talent
- 4English and Spanish among happiest languages | euronews, world news
- 5Greek debt: who will pay if Greece fails? | euronews, world news
- 6Exclusive: Tsipras promises meritocracy, transparency for Greece, urges Europe to put people first | euronews, world news
- 7Watch: Ukraine MPs in fierce fist fight outside parliament | euronews, world news
- 8Dramatic dashcam video captures Taiwan plane crash | euronews, world news
- 9International news | euronews, latest international news
- 10Data ‘mocks’ claims migrants try for Europe ‘expecting’ sea rescue | euronews, world news
- 11European Union News | euronews: latest breaking news and headlines about European Union
- 12Kosovo emptying out, hopes for independent future exhausted | euronews, world news
- 13Tens of thousands march in Moscow in memory of Boris Nemtsov | euronews, world news
- 14‘Blue’ dress causes internet confusion. Is it white and gold? | euronews, world news
- 15Live updates: follow the 2015 Oscars ceremony | euronews, world news
- 16euronews apps : iPhone, iPad, Android, Windows Phone 8, Windows 8, Nokia S40, Nokia Asha, Smart TV and Google Glass
- 17Implanted RFID chip controls office access for Stockholm workers | euronews, hi-tech
- 18Barack Obama’s silly Buzzfeed video goes viral | euronews, world news
- 19Elastic road surface reduces motorway noise pollution | euronews, futuris
- 20Canada: Valentine’s Day mass shooting plot foiled say police | euronews, world news
Wires > News
- 00:36 CET Exclusive – Obama says Iran must halt key nuclear work for at…
- 00:32 CET Obama, Israel’s Netanyahu clash over Iran diplomacy
- 00:25 CET Somali-American on FBI watch list detained in Somalia: source
- 23:42 CET Cuba signals readiness to fast-track U.S. diplomatic ties
- 23:38 CET Bomb near top Cairo court house kills two; other blasts hit capital
- 23:23 CET Exclusive – Obama hopes for U.S. embassy in Cuba before April…
- 23:20 CET Exclusive – Obama defends lack of ‘Plan B’ for Obamacare court case
- 23:19 CET Exclusive – Nemtsov killing sign of worsening climate in Russia…