Monday

23rd Apr 2018

Trichet: EU treaty change needed to 'impose decisions' on states

  • Greek watching Trichet on a big screen earlier this year (Photo: dielinke_nrw)

The outgoing head of the European Central Bank (ECB) has called for a change to the European Union treaty to allow for the outside imposition of economic policy on a member state.

ECB president Jean-Claude Trichet told French broadcasters on Sunday (16 October) following a meeting of G20 finance ministers in Paris that such a step is necessary in the wake of the eurozone crisis to guard against any one member state endangering the single currency area.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

"It is necessary to change the treaty to prevent one member state from straying and creating problems for all the others," he said. "To do this, one even needs to be able to impose decisions."

Trichet, who will soon be leaving the central bank after eight years at the top of the organisation, said that in the absence of a federal state, such external supervision is required.

"We don't have a federal budget, we don't have a political federation so we have to fully respect the constraints and the mutual supervision rules that exist in the euro zone," he said.

Ministers at the G20 meeting of national economy chiefs from the world's leading economic powers issued a joint statement expressing hope that an EU summit dedicated to the crisis next weekend (23 October) will draw a line under the eurozone's problems, saying they expect the bloc to "decisively address the current challenges through a comprehensive plan."

The summit - split into two parts between the wider EU bloc as a whole and the smaller 17 nations of the euro area - is to unveil a package of measures including a recapitalisation of Europe's banks, an expansion of the eurozone's rescue mechanisms to convince markets Spain and Italy are safe from contagion and a significant write-down of Greek public debt.

France and Germany, for some weeks now at loggerheads over the scale of such a Greek haircut for investors, appear to be closing in on a common position.

"We have points of agreement that are emerging and we'll have an agreement on this question," French finance chief François Baroin said following the G20 meeting. "Heads of state and government, in particular the chancellor and the president to put together the elements of the agreement on 23 October."

After months of strong criticism from across the Atlantic, Washington gave its imprimatur to the progress European powers are making in developing a comprehensive plan to put the crisis behind them.

"They clearly have more work to do on the strategy and the details, but when France and Germany agree on a plan together and decide to act, big things are possible," US treasury secretary Geithner said.

"I am encouraged by the speed and direction in which they are moving."

EU treaty change should be limited, says parliament president

Amid general weariness about the thought of changing the EU treaty once more, European Parliament President Jerzy Buzek has suggested an open-and-shut scenario where any tweaking be kept to the area of economic governance.

Cameron tries to save face on mooted treaty change

A 'limited treaty change' will allow Britain to 'advance its agenda', British PM Cameron said Sunday after failing to stop EU leaders from opening that perspective, one day ahead of a key vote in the British parliament.

MEPs want 'convention' on EU treaty

The corridors of the European Parliament are alive with talk of possible EU treaty change, a multi-tentacled process that once opened is difficult to keep a lid on.

News in Brief

  1. Audit office: Brexit 'divorce' bill could be billions higher
  2. MEPs urge better protection for journalists
  3. Dieselgate: MEPs back greater role for EU in car approvals
  4. European parliament adopts new organic farming rules
  5. EU granted protection to half million people in 2017
  6. Report: Facebook to carve 1.5bn users out of EU privacy law
  7. Greek court ruling permits migrants to travel to mainland
  8. Commonwealth summit hopes for trade boost after Brexit

Stakeholders' Highlights

  1. Nordic Council of MinistersWorld's Energy Ministers to Meet in Oresund in May to Discuss Green Energy
  2. ILGA EuropeParabéns! Portugal Votes to Respect the Rights of Trans and Intersex People
  3. Mission of China to the EUJobs, Energy, Steel: Government Work Report Sets China's Targets
  4. Martens CentreJoin Us at NET@WORK2018 Featuring Debates on Migration, Foreign Policy, Populism & Disinformation
  5. European Jewish CongressKantor Center Annual Report on Antisemitism Worldwide - The Year the Mask Came Off
  6. UNICEFCalls for the Protection of Children in the Gaza Strip
  7. Mission of China to the EUForeign Minister Wang Yi Highlights Importance of China-EU Relations
  8. Nordic Council of MinistersImmigration and Integration in the Nordic Region - Getting the Facts Straight
  9. Macedonian Human Rights MovementMacedonians in Bulgaria Demand to End the Anti-Macedonian Name Negotiations
  10. Counter BalanceThe EIB Needs to Lead by Example on Tax Justice
  11. ILGA EuropeTrans People in Sweden to be Paid Compensation for Forced Sterilisation
  12. International Partnership for Human RightsThe Danger of Standing Up for Justice and Rights in Central Asia

Latest News

  1. ECJ ruling set to end 10-year 'mouth tobacco' lobbying saga
  2. Whistleblowers, Syria and digital revolution This WEEK
  3. MEP friendship groups offer 'backdoor' for pariah regimes
  4. Macron and Merkel pledge euro reform
  5. Obscurity surrounds EU military fund's expert groups
  6. New EU party finance rules short circuit accountability
  7. Draghi to stay in secretive 'lobby' group
  8. Bulgaria offers lesson in tackling radical-right populists