Reforming the Eurozone Financial Structure
Representatives of Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, the Netherlands and Sweden claimed that Eurozone banking union requires reformation and compliance with budget rules should be improved, adding that there should be a European Monetary Fund with a clear vision for the EU future. The joint statement unveiled: "Stronger performance on national structural and fiscal policies in line with common rules... should have priority over far-reaching proposals”.
As we know, the proposal to reform the Eurozone structure first came from French President Emmanuel Macron, but the negotiation with German Chancellor Angela Merkel was halted due to formation of Grand coalition in Germany. But, since the political situation is settled, the talks will resume in the near term. Macron insists on a mutual Eurozone budget or common finance ministry, but officials of Northern EU countries believe that would be too bold of a move. Instead, they endorse the idea of turning the ESM (European Stability Mechanism) fund into a European monetary fund.
Petteri Orpo (Finland's Finance Minister) said: "There are "nice to have” reforms, like a common finance ministry, but they do not solve the real problems. That will only be done through pragmatic steps. We should not implement quasi-reforms, but be honest and acknowledge which reforms actually fix the problems we're facing."