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Ecofin moves on debt crisis and budget issues

Ecofin moves on debt crisis and budget issues
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European Union finance ministers and other officials meeting in Luxembourg to discuss the EU debt crisis and budget issues plan to expand efforts to contain the region’s problems.

Finance ministers from the 16 countries that use the euro have been trying to restore confidence in the currency by finalising the operational aspects of a plan that would rescue struggling economies if needed.

They are also pledging additional budget cuts and taxes.

Despite much discussion, the ministers still have not been able to agree on how to make the banks pay for any financial crises they create in the future.

They do seem to be moving closer to a consensus on a financial transaction tax but differences remain on whether the money raised should go into state coffers or be kept in a reserve fund for bank rescues.

What has been agreed is that the EU’s statistics agency will have more power to verify national budget reports so there is not a repeat of what happened with Greece, which grossly understated its figures leading to the current crisis.