Proposed EU reforms may create ‘two-speed’ zone – EU budget chief

Janusz Lewandowski - Worried About Two-Speed Europe

Janusz Lewandowski – Worried About Two-Speed Europe

Janusz Lewandowski – the budget chief of European Union said that the proposed reforms in the eurozone by Germany and France to increase the economic competitiveness risks creating a ‘two speed euro’ and discourages future members from joining the bloc.

He said Times newspaper that the core members of EU should rather engage with other European Union countries in discussions to improve governance.

“Developments are being watched with some nervousness in Warsaw and other capitals”, he said cautioning on the possible pitfalls. “We need a discussion on how to avoid a two-speed Europe”, he added.

Germany and France – the two biggest and fastest growing economies are pushing for a “pact for competitiveness” to boost investor confidence in the bloc’s economic future.

They have proposed national laws on debt limits and increasing retirement age of employees.

However, this may have given a perception that “the door to this internal club could be closed”, Lewandowski said.

One of the alternatives could be “partial affiliation” to the euro zone so that future members benefit from financial stability mechanisms.

The non-EU countries like Hungary and Poland “should feel like they are part of discussion over the future of the euro zone, because this is their destination”, he said.

“It is very difficult to have the door to the euro zone half-open for non-eurozone countries”, he concluded.

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