Sunday

28th Aug 2016

Polish finance minister says Europe at risk of "collapse"

  • Rostowski: 'We have to be sure, that going into this house [the eurozone] it will be earthquake-proof' (Photo: consilium.europa.eu)

Polish finance minister Jacek Rostowski has said the EU could "collapse" if leading countries such as Germany mishandle the financial crisis.

Speaking in Polish daily Gazeta Wyborcza on Monday (29 August), the minister said: "European elites, including German elites, must decide if they want the euro to survive - even at a high price - or not. If not, we should prepare for a controlled dismantling of the currency zone."

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

He added: "We have a simple choice: Solidarity or the collapse of Europe."

Rostowski criticised the German "elite" after German President Christian Wulff last week said the European Central Bank (ECB) should not buy struggling Italian and Spanish bonds.

The Polish minister said the ECB programme is an essential stop-gap measure until the EU crisis-fund, the EFSF, is given new powers to buy sovereign debt.

He indicated that eurozone countries will have to pour more cash into the €440 billion EFSF to make it fit for purpose.

"We cannot allow markets to have a shadow of a doubt that the EFSF is not big enough to stabilise all the euro countries which need help," he said. With Italy's debt alone standing at almost €1.9 trillion, the EFSF should be "very big" he noted.

The Polish minister said the long-term solution to the crisis is deeper integration.

"The fundamental problem of the eurozone is not an economic but a political one," he explained. "The choice is: much deeper macroeconomic integration in the eurozone or its collapse. There is no third way."

He attacked Finland for its "egoism" in seeking collateral for a new loan to crisis-struck Greece.

He also diagnosed two forms of "dangerous populism" at work in EU politics - a southern populism based on financial irresponsibility and a northern one based on lack of solidarity with southern countries.

Rostowski said Poland will not join the euro until it is sure the currency is "earthquake proof".

But he added that wealthy northern countries as well as non-eurozone EU members will suffer if it falls.

"It's hard to imagine anything that would hit the Dutch, German or Finnish economy harder than the collapse of the banking system in any eurozone country," he said. "The collapse of the eurozone would [also] be catastrophic for Poland."

News in Brief

  1. Hungary plans to reinforce border fence against migrants
  2. France's highest court suspends burkini ban
  3. Greeks paid €1bn more in taxes in June
  4. Greek minister denounces EU letter on former statistics chief
  5. Turks seeking asylum in Greece may cause diplomatic row
  6. Merkel becomes digital resident of Estonia
  7. Report: VW will compensate US dealers with €1bln
  8. EU mulls making Google pay news media for content

Stakeholders' Highlights

  1. GoogleBrussels - home of beer, fries, chocolate and Google’s Public Policy Team - follow @GoogleBrussels
  2. HuaweiSeeds for the Future Programme to Bring Students from 50 countries to China for Much-Needed ICT Training
  3. EFASpain is not a democratic state. EFA expresses its solidarity to Arnaldo Otegi and EH Bildu
  4. UNICEFBoko Haram Violence in Lake Chad Region Leaves Children Displaced and Trapped
  5. HuaweiMaking Cities Smarter and Safer
  6. GoogleHow Google Makes Connections More Secure For Users
  7. EGBAThe EU Court of Justice Confirms the Application of Proportionality in Assessing Gambling Laws
  8. World VisionThe EU and Member States Must Not Use Overseas Aid for Promoting EU Interests
  9. Dialogue PlatformInterview: "There is a witch hunt against the Gulen Movement in Turkey"
  10. ACCAACCA Calls for ‘Future Looking’ Integrated Reporting Culture With IIRC and IAAER
  11. EURidNominate Your Favourite .eu or .ею Website for the .EU Web Awards 2016 Today!
  12. Dialogue PlatformAn Interview on Gulen Movement & Recent Coup Attempt in Turkey