EU eyes unity and growth

The European Commission yesterday proposed near-term improvements to the way the eurozone runs its economy as part of a broader plan to more deeply integrate the single currency area and avoid future crises.

The commission proposed to set up special institutions that would monitor how competitive their economies are and how quickly wages can grow.

The so-called Competitiveness Boards in each eurozone country would be independent and consider competitiveness in the broad sense, looking not only at cost, but also at productivity, skills, the business environment and innovation.

It said it would streamline the existing but highly complex EU budget rules.

But it also wants to create next year a separate, independent European Fiscal Board that would act as an advisory body on the best fiscal stance for the eurozone as a whole and coordinate the work of existing national fiscal boards.

To boost citizens’ confidence in euro zone banks, shaken by financial sector crises in Cyprus, Greece, Ireland and Spain, the EC proposed to create a European system for insuring bank deposits.

Such a system would help create a European Banking Union, under which eurozone lenders are already under the supervision of one institution, the Single Supervisory Mechanism.