Slovak News Back to the news
Balaz: Euro Will Face Constatnt Crises Without Central Finance Authority
Sunday 21 November 2010 Zoom in | Print page
Bratislava, November 21 (TASR) - The euro will face constant crises without a central authority responsible for the state budgets of eurozone-member states, said Slovak Academy of Sciences (SAV) analyst Vladimir Balaz on Sunday.
"The euro has one basic problem that no other world currency has. Every other world currency stands on two feet. One is its central bank, and the other is the country's finance ministry. But the European Union doesn't have a joint finance ministry, there are 16 state ministries all coming together. These don't always behave in a responsible manner, particularly in Greece, partly in Portugal as well," said Balaz.
According to the analyst, as long as the eurozone isn't able to create a central finance ministry or some sort of central authority, the euro will constantly face crises. "Of course there is pressure for the creation of such an authority. In this case, decision-making concerning Slovak taxes, child benefit, pensions and others would be decided in Brussels," said Balaz, adding that this would call for a revision of the Lisbon Treaty, while eurozone-member states would have to hold referendums concerning further steps.
All rights reserved. Any publishing or further dissemination of press releases and photographs from TASR's resources without TASR's prior written approval constitutes a violation of the Copyrights Act.
