Moscovici advocates Eurozone unemployment insurance
Pierre Moscovici repeated that France wants the euro zone to have its own budget, with the equivalent of a finance minister. The first step in such a budget could be a shared unemployment insurance system, he said. Revenues from the budget could come from a shared sales tax, or even a carbon tax, he suggested according to the Wall Street Journal. "The euro zone needs a second generation of architects so it can deliver all its promises to its people," Moscovici said.
Christine Lagarde said the euro zone still has a way to go in building a fiscal union to deal with future crises. She said Europe has made significant progress on increasing oversight of national budgets, but the rules will only be good if they are properly enforced. Lagarde also called for a stronger risk-sharing mechanism, such as a rainy day fund, and said there needs to be a credible pan-European backstop for the resolution of banks.