ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • India
    • Economy
    • Politics
    • Markets
  • World
    • Economy
    • Politics
    • Markets
  • Companies
    • Auto
    • Banking & Financial Services
    • Pharma
    • Energy
    • Infrastructure
    • Media
    • IT
    • Telecom
    • Consumer Products
    • Aviation
    • FMCG
  • Personal Finance
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
  • Mutual Funds
  • Technology
  • Automobile
    • Cars
    • Bikes
  • Small Business
    • SME
    • Startups
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
    • AUTHORS
Home » World News

Euro zone needs 19 healthy economies, not special budget, says Dutch PM

  • Twitter
  • Facebook
  • GPlus
Euro zone needs 19 healthy economies, not special budget, says Dutch PM
Netherlands' PM Rutte arrives to attend the EU leaders summit in Brussels. Image source: Reuters
Updated: Fri, Dec 15, 2017
04:48 pm
Reuters
RELATED NEWS
UK no longer preferred spot for Indian investment UK no longer preferred spot for Indian investment
Nearly half of German firms expect growing trade strains between Europe and US Nearly half of German firms expect growing trade strains between Europe and US
Google may charge device makers for its Android apps in Europe Google may charge device makers for its Android apps in Europe
Import tariffs will have far-reaching implications on global growth: Report Import tariffs will have far-reaching implications on global growth: Report
Asian markets post modest gains as trade fears keep investors cautious Asian markets post modest gains as trade fears keep investors cautious

The euro zone does not need a special budget to help deal with crises, but rather 19 healthy national budgets that can withstand economic shocks, Dutch Prime Ministers Mark Rutte will tell his fellow European Union leaders on Friday.

French President Emmanuel Macron has called for a special euro zone budget of several hundred billion euros to pay for various joint projects, while the euro zone bailout fund has advocated setting up a fund of up to 200 billion euros ($236 billion) to soften crises that hit one or a handful of euro zone countries.

A new, centralised pool of money for the euro zone is one of the key ideas for deeper euro zone integration that EU leaders are discussing with a view to take decisions in June 2018.

"I am not in favour of one big European shock absorption fund but 19 smaller ones. These being the countries themselves and their ability to deal with crises individually," Rutte told reporters in remarks he was set to repeat to EU leaders on Friday.

Germany, like the Netherlands, believes no euro zone budget is needed.

For budgets to be sound, the European Commission must better enforce existing EU budget rules, called the Stability and Growth Pact, which set limits on government borrowing.

"Each time the Commission overlooks violations of that pact, which happens too often if you ask me, it makes us weaker instead of stronger," Rutte said.

He will also call for establishing a clear link between receiving EU funds by governments and their implementation of reforms suggested each year by the Commission.

Before changing anything in the current euro zone set-up, leaders should focus on strengthening the banking sector. But he said that to introduce a proposed euro zone-wide deposit insurance scheme, banks had to reduce risks they take first.

He said this included changing the risk weights of various government bonds that under current rules are all considered risk-free.

"It`s a fact that not all government bonds are created equal. The associated risk needs to be reflected on balance sheets," Rutte said.

The Netherlands also wants, like Germany and Slovakia, to introduce a sovereign debt restructuring mechanism that would set out the rules for private investors` losses in case government debt has to be restructured.

Rutte will stress that responsibility for the euro was with national governments, rather than with EU institutions, putting himself in opposition to European Commission proposals aimed at turning euro zone government bodies like the Eurogroup of ministers and their bailout fund, into EU institutions.

 

TAGS:
EuropeEuro ZoneEconomic shocksBrexitDutch PM RuttePrime Ministers Mark RutteEuropean UnionworldEconomy
RELATED NEWS
UK no longer preferred spot for Indian investment UK no longer preferred spot for Indian investment
Nearly half of German firms expect growing trade strains between Europe and US Nearly half of German firms expect growing trade strains between Europe and US
Google may charge device makers for its Android apps in Europe Google may charge device makers for its Android apps in Europe
Import tariffs will have far-reaching implications on global growth: Report Import tariffs will have far-reaching implications on global growth: Report
Asian markets post modest gains as trade fears keep investors cautious Asian markets post modest gains as trade fears keep investors cautious

LATEST NEWS

DoT panel seeks impact of SC, CCI order in Rs 3,050cr penalty on Airtel, Vodafone and Idea

Want a home loan? This is what SBI offers you under PMAY 'Housing for All' scheme

7th Pay Commission: These personnel's retirement age to be hiked courtesy court; lakhs to benefit

Nellore railway station to get world-class makeover; Venkaiah Naidu dedicates various train services to Andhra Pradesh

Yamaha launches 2019 MT-09 in India - From price to specs, check key details

Jewar Airport: More than double return in 5 years! Why investing in land here is a realty win-win

LIVE: UP anganwadi worker, helper salary 200% hike announcement likely today by CM Yogi Adityanath

Modi govt Mudra Scheme: Get Rs 4 lakh loan to start this business

Seeking Health Insurance Policy? Get big relief from confusing products soon

Warning! ICICI Bank account holder? Avoid this to have secure online banking

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • Amazon Prime Day
  • Income Tax
  • Bharti Airtel
  • NPA
  • Home Loan

Trending Topics

  • Farm Loans
  • 7th Pay Commission
  • Sanitary Pads
  • National Stock Exchange
  • GST

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved