ZCZC
BCN-07
EU-SUMMIT-ECONOMY-MERKEL
EU leaders agree on scaled back eurozone budget plan
BRUSSELS, Dec 15, 2018 (BSS/AFP) – EU leaders on Friday agreed on a series of
reforms to the eurozone that includes plans for a specific budget for the
single currency bloc, German Chancellor Angela Merkel said.
After a “controversial discussion” at an EU summit, leaders agreed on
reform measures that “includes a budget for the eurozone,” Merkel said after
27 EU leaders, not including Britain, discussed the measure in Brussels.
The EU heads of state and government, minus Britain, were working from
proposals thrashed out by ministers during marathon talks last week, capping
18 months of stop-start negotiations.
“This comprehensive package paves the way for a significant strengthening
of the European Monetary Union,” a statement from the leaders said.
The proposals are meant to strengthen the financial plumbing of the
European economy, but ignore far grander visions such as designating a
eurozone finance minister or setting up a European version of the
International Monetary Fund.
France considers the eurozone budget the centrepiece of the proposals, but
in the final decision, it is referred to as as a budgetary “instrument” in
order to soothe the anxieties of fiscal hardliners the Netherlands.
French President Emmanuel Macron, weakened by anti-government protests back
home, has hailed the plans as a symbolic breakthrough towards a more closely-
knit European Union.
The new budget scheme has no hard figure attached and will be linked to the
seven-year overall EU budget that will be negotiated by the 27 member states
over the next year.
“The features of the budgetary instrument will be agreed in June 2019,” the
statement said.
BSS/AFP/SR/1800 HRS