Northern EU states urge caution in euro reforms

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Northern EU states urge caution in euro reforms

By Tuomas Forsell

 

FILE PHOTO: Finland's Finance Minister Petteri Orpo listens to the media in Helsinki, Finland, November 29, 2017. REUTERS/Tuomas Forsell/File Photo

 

HELSINKI (Reuters) - Eight northern European countries said on Tuesday that euro zone reforms should focus on completing the banking union, improving compliance with budget rules and setting up a European Monetary Fund, with more ambitious plans left for later.

 

Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, the Netherlands and Sweden were referring to French proposals for deepening euro zone integration, discussion of which has been on hold pending the formation of a new government in Germany.

 

"Stronger performance on national structural and fiscal policies in line with common rules... should have priority over far-reaching proposals," they said in a joint statement.

 

Following the formation of a new "Grand Coalition" in euro zone powerhouse Germany, Chancellor Angela Merkel is expected to continue talks about reforming the 19-country currency bloc with French President Emmanuel Macron.

 

The northern countries are cautious about Macron's ambitious plans, which include a joint euro zone budget or common finance ministry.

 

The group, which includes non-euro members Denmark and Sweden, said the integration plans should focus on areas where member states are already closest to a compromise, like the completion of the banking union.

 

"There are "nice to have" reforms, like a common finance ministry, but they do not solve the real problems. That will only be done through pragmatic steps," Finland's Finance Minister Petteri Orpo told Reuters by telephone.

 

"We should not implement quasi-reforms, but be honest and acknowledge which reforms actually fix the problems we're facing."

 

The northern group said it supports the idea of expanding the European Stability Mechanism (ESM) fund into a European monetary fund but it does not back the European Commission's proposal on having the European Parliament oversee it.

 

"An EMF should have greater responsibility for the development and monitoring of financial assistance programmes. Decision-making should remain firmly in the hands of Member States", the statement said.

 

The EU executive has suggested transforming the euro zone's government-owned-and-run bailout fund into a European Monetary Fund in December. The idea of expanding the role of the bailout fund is backed by Germany and France.

 

The "Northern Lights" group, comprising the EU's Nordic members, Ireland and the Netherlands, often joined forces with Britain to battle more protectionist traditions in France and Germany or eastern and southern states hungry for EU subsidies.

 

But Britain's impending departure from the EU has prompted the group to look for new allies, such as the free-trading Baltic states.

(Reporting by Tuomas Forsell; Editing by Catherine Evans)

 

-- © Copyright Reuters 2018-03-06

[mercman24]

cant they see it FRANCE, is trying to dictate to these countries, now let me see who is France, a nothing country that has been overrun on numerous times, jumped up prick.  its the FRANCE  and GERMAN SHOW

[Briggsy]

2 minutes ago, mercman24 said:

cant they see it FRANCE, is trying to dictate to these countries, now let me see who is France, a nothing country that has been overrun on numerous times, jumped up prick.  its the FRANCE  and GERMAN SHOW

You may have a point but you need to articulate it more clearly.

[Guest]

1 minute ago, mercman24 said:

cant they see it FRANCE, is trying to dictate to these countries, now let me see who is France, a nothing country that has been overrun on numerous times, jumped up prick.  its the FRANCE  and GERMAN SHOW

It's not.

 

It's a community where different countries and different people inside of those countries wish and do have their say.

 

Many decisions are compromises, like in our everyday lives. 

[ilostmypassword]

4 minutes ago, mercman24 said:

cant they see it FRANCE, is trying to dictate to these countries, now let me see who is France, a nothing country that has been overrun on numerous times, jumped up prick.  its the FRANCE  and GERMAN SHOW

France's war record is relevant here but Germany's is not? I don't see how either's is, but no doubt you can enlighten us.

And how exactly will France dictate to these countries? What leverage does it have to enforce its will?

[Baerboxer]

2 hours ago, oilinki said:

It's not.

 

It's a community where different countries and different people inside of those countries wish and do have their say.

 

Many decisions are compromises, like in our everyday lives. 

 

Only France and Germany, and yes the UK was the same, feel they can veto things and impose their will.

 

France isn't a net, let alone big net, contributor but Macron knows he has to pander to French ego to keep his job. French proposals always seem to benefit France in some way. Like when they advocate and EU army, under French leadership and probably with France supplying most of the arms. 

 

These Northern countries are right to voice their concerns; the same as central Eastern European countries do with theirs. France and Germany are not in charge although they both like to act as if they are.

[dunroaming]

29 minutes ago, Baerboxer said:

 

Only France and Germany, and yes the UK was the same, feel they can veto things and impose their will.

 

France isn't a net, let alone big net, contributor but Macron knows he has to pander to French ego to keep his job. French proposals always seem to benefit France in some way. Like when they advocate and EU army, under French leadership and probably with France supplying most of the arms. 

 

These Northern countries are right to voice their concerns; the same as central Eastern European countries do with theirs. France and Germany are not in charge although they both like to act as if they are.

Very true, especially now Macron is in Frances driving seat.  Merkel may be more realistic now that her position as somewhat compromised through this German election.  I would expect that there will be some kickbacks against Macron from the other 26 members and that is only to be expected.  Britain leaving is shaking things up in the EU and hopefully will trigger reforms.

[soalbundy]

4 hours ago, mercman24 said:

cant they see it FRANCE, is trying to dictate to these countries, now let me see who is France, a nothing country that has been overrun on numerous times, jumped up prick.  its the FRANCE  and GERMAN SHOW

They did alright at Hastings, you're just jealous because it's not a UK show, if it was you would be doing an Alf Garnet.

[teatree]

Maybe they will shelve plans for an EU army now.

[Retiredandhappyhere]

8 hours ago, oilinki said:

It's not.

 

It's a community where different countries and different people inside of those countries wish and do have their say.

 

Many decisions are compromises, like in our everyday lives. 

In most EU countries, it is the pro-EU leaders who have their say and NOT their voters.  Hence  once the British voters were in fact asked,  Brexit was the result.  Most EU countries refuse to let their voters  have the choice with a referendum on the subject, fearing a similar result to Brexit.

[Guest]

1 hour ago, Retiredandhappyhere said:

In most EU countries, it is the pro-EU leaders who have their say and NOT their voters.  Hence  once the British voters were in fact asked,  Brexit was the result.  Most EU countries refuse to let their voters  have the choice with a referendum on the subject, fearing a similar result to Brexit.

That is not true.

 

Most EU citizen support and do want to enjoy the benefits which EU offers us all. 

No, we don't want to leave the union. Why would we want to restrict our freedom to live and work where we want to?

We definitely don't want to become rather insignificant powers in the world, which we would be alone. Going forward together is better for us.