World Economy

Spain, France Demand Major EU Reforms

Spain, France Demand Major EU ReformsSpain, France Demand Major EU Reforms

Spain’s Prime Minister Mariano Rajoy has joined the French President Emmanuel Macron to demand deep reform of the eurozone even blaming the bloc for its high unemployment rate.

Madrid has proposed deeper integration of the 19 countries using the euro, implementing euro bonds, an anti-crisis budget and a common unemployment insurance scheme, Yahoo reported.

Macron has also spoken out about the need for the European Union to change as he wants a tougher bloc on trade and foreign investment, claiming the “euro will fail in 10 years without reform”.

Spain is now asking for a “real economic government” claiming the euro is “an unfinished project”. The country’s government has slammed the euro claiming Europe’s recent recession revealed critical errors in the design of the currency. Madrid also said Brussels came up with solutions for only short-term needs.

Spain’s economy ministry blamed the eurozone for “high unemployment rates in countries most affected by the crisis”.  Spain’s Foreign Minister Alfonso Dastis said: “It’s clear that we need to improve the governance of the eurozone. “The banking union will be the key test.”

Spain has proposed a common budget for the eurozone, a shared anti-crisis budget, unemployment insurance, a treasury, euro-bonds and a banking union.

In a report sent to Brussels, it says: The shortcomings in the euro’s architecture explains the differential impact of the last crisis. The euro does not just need firefighters, it also needs architects.

“The European project can only endure if its citizens see that it provides sustainable and inclusive prosperity levels.”

Spain has also requested more democratic control over institutions such as the Eurogroup.

The European Commission is set to release its own report on the future of the euro at the end of this month along with reflection papers debating ideas for Europe in 2025.

Meanwhile, unemployment in Spain rose slightly in the first quarter, traditionally a weak period for the country’s labor market, leaving the jobless rate at 18.8%.

According to Spain’s quarterly labor market report, there are now 4.25 million Spaniards looking for work—down more than half a million over the past 12 months but a small increase compared with the end of December. Spanish retailers and service providers often hire seasonal labor to help with the busy Christmas period, but return to normal staffing levels in January.

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