Andor: Governance sanctions “a joke”
Tuesday 06 December 2011
Social Affairs Commissioner László Andor has hit out at proposals to automatically fine countries for overstepping debt and deficit limits, and called for the introduction of eurobonds and stronger action from the European Central Bank to solve the eurozone crisis. “Automatic sanctions are a joke,” he said via the social networking site Twitter, on 6 December. “Fiscal union needs collective, democratic decision making.” He went on, “Fiscal union alone will not save the single currency - debt union also necessary. Bring in eurobond and activate ECB!” His comments come the day after French President Nicolas Sarkozy and German Chancellor Angela Merkel unveiled plans for a “stability union,” including automatic fines for debt offenders. While Merkel has ruled out eurobonds as a solution to the crisis, she has softened her stance on allowing the ECB to shore up government bond markets, paving the way for possible further interventions. Semi-automatic sanctions, which allow some room for political manoeuvre, are to come into force on 13 December under the ‘six pack’ of rules on economic governance.