Eurozone crisis: Van Rompuy and Barroso to the rescue
7 December 2011
“Van Rompuy and his plan for Europe”, leads the Spanish daily El País, referring to the plan for immediate action that European Council President, Herman Van Rompuy and European Commission President, José Manuel Durao Barroso, will table at the European Council meeting on December 8 and 9.
“To deal with the crisis more decisively,” the Madrid daily writes, Van Rompuy proposes that the European Financial Stability Fund [EFSF] “recapitalise banks directly, and he does not preclude issuing Eurobonds in the long-term.”
For El País, Van Rompuy and Barroso -
... are finally getting to the heart of the financial problems plaguing Europe: an economy paralysed by the complete lack of credit due to the banks’ mistrustful unwillingness to lend.
The Commission, meanwhile, wants to strengthen budgetary control of the countries in the eurozone by gaining the right to –
... demand [of national parliaments] a revision of the draft budgets if the Commission considers that they fail to fulfil obligations under the Stability Pact.