June 15, 2021

Ex-Ministers of Economy agree on the need to advance in fiscal integration

Ex-Ministers of Economy agree on the need to advance in fiscal integration

Four Spanish ex-Ministers of Economy have coincided today in pointing out the need to advance in a greater fiscal integration in the European Union during an act in which Elena Salgado has recognized that the economic relapse of 2010, when she controlled that portfolio, could have been avoided .

"It is impossible to maintain a monetary union and not have a fiscal union", has defended Carlos Solchaga, former Socialist Minister of Economy and Finance, to participate in a commemorative day of the 40 years of the Constitution and the 20 of the euro organized by the Ministry of Economy.

In his opinion of the also former Minister of Industry and Energy, fiscal management "is the greatest proof of the transfer of sovereignty", so that achieving a fiscal union would be "to give the last yes to the EU".

Without losing "the hope that someday there will be a fiscal union", Solchaga has cited the creation of the deposit guarantee fund, regulating financial intermediaries and promoting larger European budgets as other pending subjects.

In Europe "we do things wrong and how we can", according to Solchaga, in view of the old and current difficulties to advance in the integration, so that "each step that takes place is extraordinarily complex", so it is foreseeable that there are still many "upsets" to come.

However, for the second vice president of the government Pedro Solbes, "you can not advance so much in the economic sphere if you do not achieve greater political integration."

The also former Socialist Minister of Economy and Finance and European Commissioner for Economic and Monetary Affairs has criticized in this sense that at the national level always be blamed "all the blame on Brussels", when in fact those who make the decisions are the representatives of the member states.

In that sense, he recalled that "the initial intention to go to a single currency (in Europe) was more political than economic."

In this regard, the second exvicepresidenta of the government Elena Salgado has said in the same act that it is complicated to advance in the political integration, particularly as a result of the resurgence in Europe of "liberalisms, extremisms and nationalisms".

On the other hand, he does believe that progress can be made in the fiscal union and pointed out that between 20% of the weight of federal taxation in the US and less than 1% in the EU "there is still a lot of ground".

Salgado has criticized the lack of solidarity that was seen by some countries during the last crisis and has argued that "this is how Europe is not built".

In his opinion, it is necessary "to exercise European solidarity in a more organized and structured way and not dependent on the politician of the moment", for which a "fiscal leg" is necessary that allows acting "with one voice and not only with a only ECB ".

During her speech, Salgado has defended that she could have avoided the economic relapse suffered in 2010, when she was second vice president and minister of Economy and Finance, and with her "a lot of suffering".

That relapse would have been avoided, he said, if many stimuli had not been withdrawn in an accelerated manner, the effect of the austerity measures on growth had been well calculated, the stress tests to the banks would have been more credible and would have been thought in capitalizing the entities instead of creating a bad bank.

The vice president of the European Central Bank Luis de Guindos has also considered that the "fiscal leg" of the economic union should be promoted and has mentioned other challenges such as continuing to clean up the banking system.

For the also former Minister of Economy, Industry and Competitiveness it is curious that there have been no mergers between European banks, which shows that "there are still important national divergences."

In his opinion, it would be convenient "to have a fiscal embryo" that allows to act counter-cyclical to specific problems of each country, which would be "a first step", although it agrees that this requires a "political will".

Although the Monetary Union "had initial design problems", De Guindos believes that there has been progress and now Europe is "better prepared for a future crisis", although "there are pending issues and more measures have to be taken to face potential risks" .

The current Minister of Economy and Business, Nadia Calviño, announced during the day the issuance of a silver commemorative coin that reflects the image of one of the lions that guard the Congress and on the other hand the profile of Felipe VI.


Source link