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Kobi · 10-08-2012, 10:12 AM

BRUSSELS (Reuters) - Debate about the idea of creating a separate budget for euro zone countries is intensifying in the run-up to an EU summit later this month, with less opposition to the proposal than many officials first expected, diplomats say.

While conceptually it may make sense for the countries that share one currency to also create a single budget, it immediately raises thorny questions about sovereignty, budget discipline and long-term ambitions.

Germany's precise ideas about how a single budget would be financed, managed and employed are likely to be vastly different from Portugal's, Estonia's, Italy's or France's once leaders and finance ministers get into the nitty-gritty of the concept.

Yet there are already some broad proposals doing the rounds, including the idea -- backed by France -- that the budget could be financed by revenue from a financial transactions tax (FTT).

Germany and France are already driving an initiative to establish an FTT among nine euro zone, the minimum number permitted to do it alone. There is already support from eight countries and a ninth could come on board as soon as next week, giving added impetus to the plan.

But other euro zone countries that might like a single budget, such as Finland, are lukewarm on the idea of an FTT, underscoring just how complex negotiations could become.

There are also differences of opinion about why a single budget is desirable. Germany sees it as a means of building solidarity and tightening budget rules without moving to the more extreme suggestion of mutualising all euro zone debt.

France sees a single budget more as a means of ironing out divergences in social and employment policy, arguing that it could be used to help underwrite unemployment benefits in a country suffering from much higher joblessness than the rest.

While many countries are voicing quiet support for the idea, it is also clear that most have a conflicting take on what it would involve if it were ever to become a reality.

http://ca.news.yahoo.com/single-euro...--finance.html
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This is scary news. One the one hand it can be seen as desperate times call for desperate measures. On the other hand, it can be seen as advancing the new world order of one currency and one economy.

10-08-2012, 10:12 AM	#2677
Kobi Infamous Member How Do You Identify?: Biological female. Lesbian. Relationship Status: Happy Join Date: Feb 2010 Location: Hanging out in the Atlantic. Posts: 9,234 My Photo Gallery Thanks: 9,840 Thanked 34,630 Times in 7,640 Posts Rep Power: 21474861	Single euro zone budget gains momentum ahead of summit BRUSSELS (Reuters) - Debate about the idea of creating a separate budget for euro zone countries is intensifying in the run-up to an EU summit later this month, with less opposition to the proposal than many officials first expected, diplomats say. While conceptually it may make sense for the countries that share one currency to also create a single budget, it immediately raises thorny questions about sovereignty, budget discipline and long-term ambitions. Germany's precise ideas about how a single budget would be financed, managed and employed are likely to be vastly different from Portugal's, Estonia's, Italy's or France's once leaders and finance ministers get into the nitty-gritty of the concept. Yet there are already some broad proposals doing the rounds, including the idea -- backed by France -- that the budget could be financed by revenue from a financial transactions tax (FTT). Germany and France are already driving an initiative to establish an FTT among nine euro zone, the minimum number permitted to do it alone. There is already support from eight countries and a ninth could come on board as soon as next week, giving added impetus to the plan. But other euro zone countries that might like a single budget, such as Finland, are lukewarm on the idea of an FTT, underscoring just how complex negotiations could become. There are also differences of opinion about why a single budget is desirable. Germany sees it as a means of building solidarity and tightening budget rules without moving to the more extreme suggestion of mutualising all euro zone debt. France sees a single budget more as a means of ironing out divergences in social and employment policy, arguing that it could be used to help underwrite unemployment benefits in a country suffering from much higher joblessness than the rest. While many countries are voicing quiet support for the idea, it is also clear that most have a conflicting take on what it would involve if it were ever to become a reality. http://ca.news.yahoo.com/single-euro...--finance.html ----------------------- This is scary news. One the one hand it can be seen as desperate times call for desperate measures. On the other hand, it can be seen as advancing the new world order of one currency and one economy.