Spain and France, among other member countries, are in strong pursuit to ensure the reformation of the eurozone. Spain forwarded a proposition to the European Commission suggesting the enhancement of economic integration through the euro. In connection to this, Spain proposes the implementation of the euro bonds and the completion of the banking union which is key in improving the governance of the eurozone. The motion further suggests the formation of an anti-crisis budget and the development of a common unemployment insurance scheme. Despite these suggestions, a report from the commission about the future of the eurozone is yet to be released.
Monetary union against crises
Spain`s economics ministry summarizes the arguments in its proposals by stating that the structure of the eurozone is potentially vulnerable to economic shocks while the high rates of unemployment in the countries affected by the instability of the eurozone is attributed to lack of absorbing mechanisms. Spain advises starters to implement the changes made by the monetary union and a means be provided to harmonize the rules of the banking systems to tackle non-performing loans. The Spanish government generally opts for mechanisms that would enable the European Union to enforce reforms on the eurozone countries in order to boost their economies.
Eurogroup and the Greece debt
In the second review in the Eurogroup, Greece had hoped for the return to the bond markets and exit from the adjustment program. This would be in effect of the agreement on the debt relief and access to European Central Bank’s quantitative easing (QE) through the disbursal of the next bailout portion. A draft statement from the Eurogroup President is assumed to propose extending the maturities of Greek loans by up to fifteen years. This idea though did not receive any approval from the IMF and Germany who play a major role in the discussions. The coming meetings are aimed at either creating additional options or adjusting expectations for Greece to meet its debt obligations.