The European Parliament’s economic and monetary affairs committee has been recalled to hear from European leaders on the fallout from the Eurozone debt crisis.
The committee is expected to meet on August 29 but is waiting for confirmation of the date. ECB president Jean-Claude Trichet and Economic and Monetary Affairs Commissioner Ollie Rehn have both confirmed they will give evidence. Mario Draghi who is set to replace Trichet at the ECB in November has been invited but has not yet confirmed. European Council President Herman Van Rompuy has declined to attend.
Recent weeks have seen a flurry of activity to try and stem the crisis with the European Central bank buying up €22bn of Italian and Spanish bonds to help support their economies as they struggle to deal with deficits. Yesterday, French President Nicholas Sarkozy and German Chancellor met in Paris and emerged from their meeting calling for “true economic governance” of the currency zone.
Liberal Democrat MEP and committee chair Sharon Bowles (pictured) says: “Too little, too uncertain, too late – that has been the response of the EU leaders to the Eurozone debt crisis. Delay has neutered the measures taken, and now options that many thought improbable have moved centre stage. Consequently, I have requested an early recall of the committee to discuss the situation.”
Chancellor George Osborne has been calling for the issuance of bonds for the Eurozone as a whole in exchange for closer fiscal integration.
Bowles says: “Eurobonds look efficient and work to that end must be commenced so they can be ready as the ‘last resort’, which Merkel and Sarkozy acknowledged yesterday.”