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MNI SOURCES: Italy Wants Any EU FinMin Under Parliament Watch
--New Eurozone Finance Minister Must Be Accountable to EU Parliament, EuCo
--Candidate Should Be EC Member, Chair Eurogroup
--If No EU Budget, Then No EU Finance Minister
By Silvia Marchetti
ROME (MNI) - Italy is in favour of appointing a formal Eurozone Finance
Minister but several conditions must be met, Market News understands.
According to Italian officials close to discussions, anyone appointed to
the role must be accountable to the European institutions and be provided with
an adequate budget.
"There are two fundamental criteria. First, this new role is possible only
if the eurozone adopts a single budget to fund its policies. Second: the
eurozone minister must be politically accountable to the European Parliament,"
Marco Piantini, European Affairs Adviser to Italian Prime Minister Paolo
Gentiloni, told Market News.
Piantini argued that creating a "real, solid European budget with adequate
resources" and giving birth to a finance minister were two sides of the same
coin -- inseparable -- and their creation needed go hand in hand.
Rome has made it clear it does not want the new finance minister to be a
"rigorous pro-austerity watchdog good at scolding just indebted southern peers,
but also have a friendly pro-growth and investment face," explained Giorgio
Tonini, Democrat president of the Senate's budget committee.
In a recent parliament hearing, Prime Minister Gentiloni warned that the
finance minister role should focus on furthering the union's convergence and
boosting growth, and that he must not turn into a "fiscal controller" overseeing
the Mediterranean countries.
-MISTER BUDGET
Rome wants the finance minister, known as 'Mr Budget' in Italian talks, to
be equipped with a genuine fiscal capacity tailored to promote investments and
to smooth the economic cycle, alongside funding Europe's common challenges such
as immigration and defence.
The Eurozone minister should ensure that a coherent and internally balanced
fiscal stance is pursued, taking into account both fiscal targets and growth
needs of single member states, added Tonini.
According to Democrat deputy Giampaolo Galli, member of the Lower House
budget committee, the best way for such a minister to be "politically
accountable" is for him or her to be a member of the European Commission, along
the lines of the High Representative for foreign affairs.
"If the eurozone minister is enshrined within the EC, it must account for
his actions and constantly brief the European Parliament. He would have a strong
link with both the EP and the European Council. This would be a good compromise
between having a brand new, potentially scary figure and one that is the
expression of the confederation of member states," argued Galli.
Rome aims to give 'Mr. Budget' another chair, too; that of the Eurogroup.
This, they argue would be in order to boost monetary and fiscal coordination
between the European Commission and member states.
However, the road ahead might be a steep and rough one, warned Giovanni
Orsina, director at the Rome-based LUISS University.
--GERMAN ROADBLOCK
"We're still in a very premature phase. A Eurozone finance minister is part
of a wider roadmap to reform the eurozone governance and all 27 member states do
not share the same views on many aspects," he said.
Above all, in Orsina's view, Germany is the greatest obstacle towards an
integrated EU budget and Eurozone minister, which would inevitably lead to "risk
and burden-sharing".
"Before taking any steps forward, I'm afraid we must wait and see what
happens in Berlin. The stalemate in forming a new government puts the breaks on
furthering union reform talks right now," argued Orsina.
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
[TOPICS: MFIBU$,M$E$$$,M$I$$$,M$X$$$,MC$$$$,MI$$$$,MX$$$$,MFX$$$,MGX$$$]
To read the full story
Sign up now for free trial access to this content.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.