Jean Claude Trichet Abandons His European Dream

 Jean Claude Trichet Abandons His European Dream

Jean Claude Trichet Abandons His European dream

In his opinion, the eurozone crisis presents a chance for a significant advancement toward ever-closer integration.

He advocates creating a European finance ministry to control national government expenditures.

He questioned if it would be too audacious to envision a minister of finance for the Union in the Union of the future or the day after tomorrow, which would have a single market, a single currency, and a single central bank.

The speech was a covert acknowledgment that neither the way the existing labor union operates nor the bailouts that have followed are satisfactory, even though he claimed the exact opposite.

Peer review and monitoring are already planned, but Mr. Trichet has something more in mind that is far above the strengthened surveillance that is already proposed.

He suggests that European policymakers effectively make spending decisions on behalf of nations that have been bailed out but are still struggling to reduce their debts.

The idea that governments can't be trusted with spending while officials can throughout this speech.

He occasionally observes European authorities making judgments that a nation would be required to follow.

Even if some of these proposals were made far in the future, certain government officials are already discussing making judgments on Greece's behalf.

The ECB's head economist, Juergen Stark, asserts that if Athens didn't take the required steps to repair its finances, then other parties may need to interfere, as he described it.

Interfering in their national policy may be a necessary method to ensure the right functioning of the monetary union, he added, if nations in trouble do not take the appropriate adjustment measures.

To achieve Trichet's goals, the treaty would need to be modified. Member nations don't seem to be particularly interested in that.

The Lisbon Treaty was negotiated for eight years. Referenda would be triggered by a treaty amendment, and given the current political climate, it seems unlikely that European people would support further devolution of authority away from the member states.

It has long been believed that fiscal unification and monetary union are incompatible. Additionally, political union is a prerequisite for fiscal union.

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