Last week, a few days before Spain's bailout was announced, Spain's
Prime Minister Mariano Rajoy sent an urgent letter to the head of the
European Commission saying that the Eurozone was headed for a train
wreck and urging immediate reform, El Mundo reports.
The letter calls for radical changes in the structure of the EU, all aimed at tighter fiscal integration.
(This is one of the only two permanent solutions in Europe. The other is breaking up the currency union.)
The reforms Rajoy proposes, which include a Euro area tax authority, are radical and would presumably take years to implement.
El Mundo (via Google Translate):
The letter calls for radical changes in the structure of the EU, all aimed at tighter fiscal integration.
(This is one of the only two permanent solutions in Europe. The other is breaking up the currency union.)
The reforms Rajoy proposes, which include a Euro area tax authority, are radical and would presumably take years to implement.
El Mundo (via Google Translate):
The tone of the letter is pressing with phrases like: "The situation is worsening rapidly, and we must address it as soon as possible" or "the euro is at risk, we need to act decisively to national and EU level to address a situation where the outcome is unpredictable."...
Rajoy insists that there is a clear "risk of rupture of the euro"
and this causes great difficulty in refinancing the debt and prevents
the adjustments made by the countries have a positive effect. "The situation is untenable, unpredictable and could bring the euro to the limit," said the president.
In his opinion, we must act immediately in five areas: the first condition is fiscal consolidation, the second in-depth market reform by providing them with flexibility, and third, to integrate national markets
by facilitating the mobility of workers and the liberalization of
services - at this point, Rajoy encourages the Commission to mobilize
all possible means to facilitate growth and job creation.
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