The idea is to create a central financial authority — with powers in areas like taxation, bond issuance and budget approval — that could eventually turn the euro zone into something resembling a United States of Europe.If Europe can get past their sovereignty problems and emerge as a single monetary and fiscal union, much like the United States, that would be a huge shift in economic power. What would the UK and the non-Euro Scandinavian countries do then, I wonder?
Officials have been hesitant to publicly endorse such a drastic change. But privately they say the issue has gained urgency in recent months, as it has become clear that Europe’s current approach, which requires unanimity on any significant moves, is unwieldy and inefficient. The idea is being promoted by some global financial officials, who worry about the risks that continued uncertainty in Europe poses to the global economy.
Tuesday, September 6, 2011
In for a Cent, In for a Euro
The New York Times picks up the story: