Olli Rehn: “We are now in the decade of fundamental reforms”

As the Irish Times notes,  EU economics and monetary affairs Commissioner Olli Rehn has joined the head of the IMF in calling for “well coordinated action to safeguard stability in the euro area”.  From the Irish Times

Mr Rehn told the conference [in Athens] that the euro area was determined to agree thorough reform to set up a new system of economic governance.

“We will not stop until we have accomplished our mission. We are now in the decade of fundamental reforms,” he said. “During the last decade economic divergence increased among member states.”

What that “well coordinated action” will be remains to be seen.  Frau Bundeskanzerlin, history’s knocking…

And, as the Irish Times’ Arthur Beesley reports, the first “narrow change” is on its way

German chancellor Angela Merkel pressed EU leaders to accept treaty change as she fears Germany’s powerful constitutional court will take issue with the €750 billion temporary fund which is being used in the €85 billion rescue of Ireland by the EU and the IMF.

Other leaders, among them Taoiseach Brian Cowen, were reluctant to follow Dr Merkel because they feared that any move to revise the treaty would open the floodgates to competing claims for other changes.

While the chancellor prevailed, her counterparts agreed to examine treaty change on the basis that the move would not lead to a referendum in Ireland or any other member state.

There is no provision in the Lisbon pact for sovereign rescues and the treaty still includes the “no-bailout clause”, which dates back to the origins of monetary union.

While the EU authorities insist the rescue of Greece and the creation of the €750 billion fund do not infringe this clause, Dr Merkel fears the German constitutional court may take a different view.

Donate to keep Slugger lit!

For over 20 years, Slugger has been an independent place for debate and new ideas. We have published over 40,000 posts and over one and a half million comments on the site. Each month we have over 70,000 readers. All this we have accomplished with only volunteers we have never had any paid staff.

Slugger does not receive any funding, and we respect our readers, so we will never run intrusive ads or sponsored posts. Instead, we are reader-supported. Help us keep Slugger independent by becoming a friend of Slugger.

While we run a tight ship and no one gets paid to write, we need money to help us cover our costs.

If you like what we do, we are asking you to consider giving a monthly donation of any amount, or you can give a one-off donation. Any amount is appreciated.