LUXEMBOURG: Euro zone finance ministers are due to seek agreement on a fledgling euro zone budget at talks in Luxembourg, but must resolve differences on the financing and approximate size of such a fund, according to a senior EU official.
The idea of a euro zone budget has been around for several years, with French President Emmanuel Macron pitching the notion of a stand alone multi-billion euro fund which was subsequently whittled down into a more modest Franco-German proposal.
As it stands, the budget for the euro zone — which currently has 19 members — would be anchored in the financial spending framework for the entire 28-country European Union, restricting the amount of money available.
However, member states disagree on whether to allow the option of additional revenue sources to bolster the fund. Paris in particular backs this approach, which could allow the euro zone budget to expand over time, while the Netherlands is staunchly opposed. One way or another, the euro zone budget — known technically as a budgetary instrument for convergence and competitiveness — would initially not be the “big bazooka” envisaged by some, the official said. — dpa
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