More Power to Brussels--Crisis Forces Europe to Unite on Financial Reform

Spiegel ^ | 09/13/2010 | By Hans-Jürgen Schlamp in Brussels

[DeaconBenjamin]

Austrian Finance Minister Josef Pröll felt tired but jubilant when he returned to his hotel on Place Jourdan in Brussels late last Monday evening. For hours on end, he and his European counterparts had been given a detailed presentation by European Council President Herman Van Rompuy and his task force on how the shaky monetary union could be stabilized and crisis-ridden Europe could be put back into shape.

The finance ministers listened attentively before going on to discuss the issue. But instead of rushing headlong into the usual squabbling session, a cozy feeling of harmony spread through the conference room.

German Finance Minister Wolfgang Schäuble found words of praise for his new "highly constructive" British counterpart, Chancellor of the Exchequer George Osborne. Osborne, who has a reputation as a euroskeptic, in turn described Brussels' plans, which London had until then rigorously opposed, as "not bad."

Afterwards, over a glass of red wine at the hotel bar, Austria's Pröll, who has always been somewhat critical of Brussels, enthusiastically said that the EU is more or less implementing "what we have been discussing for years." He said that the European Union was about to take a "quantum leap" that will "fundamentally change Europe."

Relinquishing Power

The politicians appear to be determined to make up for what they have neglected in the past. A monetary union cannot succeed in the long term if every member state simply pursues the economic policies that suit its own interests. This is something that economists have always known, but it has never been politically feasible: Euro-zone member states were not prepared to relinquish more power to Brussels.

[the invisib1e hand]

Crisis Forces Europe to Unite on Financial Reform

Indeed. 20 years ago people said a single world currency was impossible. Now it looks inevitable.

[expatpat]

Giving Brussels more power is going to end badly......