EU bids to give Brussels final say over budgets, banks
(BRUSSELS) - EU leaders want to give the EU Commission the final say over national budgets in the eurozone and banking supervision across the single market, a top level report says.
However, European Union leaders at a summit starting on Thursday will push back decisions until December.
A report drawn up by EU and eurozone leaders Herman Van Rompuy, Jose Manuel Barroso, Jean-Claude Juncker and Mario Draghi proposes to move "over the next decade" towards a system under which power passes from national to central levels, for the "financial sector, for budgetary matters and for economic policy."
In the report, European Union president Van Rompuy says that "the euro-area level would be in a position to require changes to (national) budgetary envelopes if they are in violation of fiscal rules."
Meantime, for the banks, "integrated supervision... should evolve as soon as possible towards a single European banking supervision system," one that woul;d give the European level "ultimate responsibility."
Drawn up by Van Rompuy and the heads of the EU Commission, the Eurogroup of finance ministers and the European Central Bank, the four underline that: "All these elements should be buttressed by strengthened democratic legitimacy and accountability."
The report "is not meant to be a final blueprint," Van Rompuy states in the version placed online on Tuesday, likely to change significantly before is eventual adoption, preferring to set out "building blocks" in search of "a common understanding" at the summit of leaders ending on Friday.
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