“if efforts to deal with its debt crisis do not deliver results”

ECB’s Trichet Suggests Creation of Euro Finance Ministry

May 25 (Reuters) — Europe should consider strengthening central control of economic policy if efforts to deal with its debt crisis do not deliver results, European Central Bank President Jean-Claude Trichet said on Thursday.

Accepting a prize for his contribution to European unification, Trichet laid out ideas including the formation of a European Union finance ministry and a veto for EU authorities over spending and other major domestic policy decisions.

“As a first stage, it is justified to provide financial assistance in the context of a strong adjustment program,” Trichet said. “But if a country is still not delivering, I think all would agree that the second stage has to be different.”

“Would it go too far if we envisaged, at this second stage, giving euro area authorities a much deeper and authoritative say in the formation of the country’s economic policies if these go harmfully astray?” European policymakers are struggling towards a new aid package for Greece that is expected to include new loans, fresh austerity commitments and a stepped-up privatisation programme, potentially supervised from outside.