THE PRESIDENT OF the European Central Bank has called for sterner budget policy scrutiny in EU countries - particularly for those experiencing debt problems, the Financial Times reports.
Jean-Claude Trichet has said that the creation of an “early warning system” to identify unsustainable economic policies in eurozone countries ought to be introduced.
In a speech about reforming economic governance to Economic Club of New York, Trichet said that proposals put forward by the European Commission about how to ensure budgetary discipline across the eurozone are insufficient.
“We need to go further still,” he said – and added that any assessment of imbalances in macroeconomic policies in the eurozone should focus on the most vulnerable countries:
When the indicators reveal potential problems, they should automatically trigger an in-depth analysis of the country concerned, including missions by the Commission in liaison with the ECB and public scrutiny.
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