Tuesday June 24, 05:12 PM
ECB's Bini Smaghi says more clarity needed on EU policy responsibilities
BRUSSELS (Thomson Financial) - European Central Bank (ECB) board member Lorenzo Bini Smaghi said the euro's first ten years have been marred by a lack of clarity on responsibility for economic policies in the European Union.
'The
real problem of the last ten years has been the lack of clarity on the level of policy responsibility between national and European decision-making. This has created confusion for the citizens of Europe,' he said in a speech.
'What is needed, first and foremost, is clarity on who does what and who is responsible for what in the European Union,' he said.
Bini Smaghi said Ireland's recent rejection of the Lisbon Treaty showed Europeans were still uncertain about the idea of a united Europe and baffled by the EU's decision-making processes and inner workings.
'Ireland's recent rejection of the Lisbon Treaty reflects the confusion that many citizens feel about Europe,' he said.
He said criticisms of the stability pact's fiscal policy rules by governments, and Commission president Romano Prodi's description of the pact as 'stupid' in 2002, contributed to the confusion among citizens.
'People inevitably asked: if the pact is stupid, why did we sign it? And if it is indeed stupid, why do we have policies that comply with it?' he said.
He said the ECB's independence and mandate have also been repeatedly and pointlessly called into question.
Bini Smaghi said the EU needs more clarity on policy responsibilities as it faces the challenges of globalisation in the decade ahead.
'We should make clear which decisions are taken at national level and which ones entail a transfer of responsibility or closer cooperation. Confusion should be avoided, as it is a recipe for failure,' he said.
The influence of individual member states on world affairs will steadily diminish, and national governments should therefore be ready to pool their representation in international bodies such as the International Monetary Fund, he said.
'If the member states still want to have a say in world economic matters, but cannot achieve this through national representation, simply because as nations they are becoming less relevant, will they accept a pooling of their representation, at euro area or EU level? Or do they prefer to maintain their national seats around increasingly irrelevant tables?' he said.
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