European Central Bank president Jean Claude Trichet has called for the creation of a European finance ministry.
In his Charlemange Prize acceptance speech, an award which honours those who have made contributions to European unity, Trichet said the EU needs tougher tools – including the ability to veto national economic decisions – to deal with imprudent member states.
The institution’s powers could also include making decisions on “major fiscal spending items” and items seen as vital to a specific country’s competitiveness.
He argued that “strengthening the institutions of the economic union” was vital to Europe’s success.
He said: “It would be not only possible, but in some cases compulsory, for the European authorities… to take themselves decisions applicable in the economy concerned.”