CHICAGO — Spanish Prime Minister Mariano Rajoy on Saturday called for the establishment of a central authority that would oversee and coordinate fiscal policy in the eurozone, according to media reports. CHICAGO — Spanish Prime Minister Mariano Rajoy on Saturday
CHICAGO — Spanish Prime Minister Mariano Rajoy on Saturday called for the establishment of a central authority that would oversee and coordinate fiscal policy in the eurozone, according to media reports.
Rajoy said the creation of the authority would be the answer to the European debt crisis and would send a signal to investors that the single currency is irreversible, according to a report from Reuters.
“Spain is a factor in this situation, but one of many. It’s not the only one and it’s not the worst. So if it’s urgent to resolve the Spanish situation, it’s no less urgent to solve the problems of the monetary union as a whole,” Rajoy said during a televised speech, according to a Dow Jones Newswires report. “I have good reasons to say that these problems of the monetary union are going to start to be solved in not very much time.”
Rajoy acknowledged that individual nations would have to cede some of their fiscal independence to such a new authority, according to news reports.
The financial fallout of a property crash in Spain fueled the country’s economic woes. The Spanish unemployment rate rose to 24.4 percent in the first quarter and its economy has contracted over the past two quarters, according to Dow Jones.
Earlier in the week, The Wall Street Journal reported the International Monetary Fund started talks about a possible rescue loan for Spain. But the fund’s managing director denied the discussions were taking place.
Greece, Ireland and Portugal all have needed international bailouts.
Greek voters want their financial bailout package terms revised, and want to stay in the eurozone, according to recent polls. Greeks will vote in a second parliamentary election on June 17. An election in May failed to produce a coalition government.
