Mersch: Eurozone needs unit to monitor fiscal policy

EUROPEAN Central Bank Governing Council member Yves Mersch said the euro area will need a new institution to monitor fiscal policies.

“In the medium to long run, we will need an institution that is solely responsible for the eurozone,” Mersch said.

“A single monetary policy needs support from sound public finances and closer economic policy coordination with an agreed framework for national budgetary policies. This could be realised by either a European commissioner with special authority or a finance minister.”