Single eurozone voice on international stage gains currency Sunday, September 10, 2006
Although the idea has been around for years, the 12 countries sharing the euro have long resisted giving up their individual seats at international institutions and meetings for joint representation.
However, a recently announced reform to give more say to emerging economic powers at the IMF has re-ignited debate about pooling the say of the eurozone on the international stage.
"It's obvious that the eurozone should be represented by a single representative," said Luxembourg Prime Minister Jean-Claude Juncker after chairing a meeting of eurozone finance ministers.
Under a plan recently agreed by IMF directors, China, South Korea, Turkey and Mexico will see immediate increases in their voting rights as part of a broader two-year program of reform.
The quotas determine how much a member contributes to the Fund, its voting rights and access to financing, which currently totals 28 billion dollars (36 billion euros) in loans outstanding to 74 countries.
Advocates of reform have long noted that small European countries like Belgium, The Netherlands and Sweden enjoy a proportionately much bigger say than big developing countries such as Brazil, China and India.
Prior to the meeting of eurozone ministers, Finnish Finance Minister Eero Heinaluoma, whose country holds the EU's presidency, said he saw growing interest in Europe a single representation at the IMF.
"There are countries and people who see a positive possibility and outlook that Europe would speak more with one voice in this institution," he told a news conference in Helsinki ahead of talks with his EU counterparts.
"To reach an agreement on this subject, we will need more time," he said, adding that there would be more "in depth discussions", especially among members of the 12-nation eurozone, after a September 19-20 meeting of the IMF and World Bank in Singapore.
While noting that the European Central Bank was already represented at major international meetings, ECB president Jean-Claude Trichet also threw his support behind the idea of a single voice for the eurozone on the international stage.
"I totally support a single representation of the eurozone in international fora, including official institutions," he said.
The idea of a single eurozone voice is also gaining currency among politicians in the region.
During a high-profile visit to Brussels, French Interior Minister and presidential hopeful Nicolas Sarkozy also said that "the time has come for a single representation of the members of the euro in the international negotiations and fora."
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