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M. Continuo

Rajoy proposes set up of euro zone fiscal authority


    MADRID (Reuters) - Spain's Prime Minister on Saturday proposed the creation of a new fiscal authority in the euro zone which would control and harmonize national budgets and manage the European debts.

    "The European Union needs to reinforce its architecture," Rajoy said at an event in Sitges, in the north-eastern province of Catalonia. "This entails moving towards more integration, transferring more sovereignty, especially in the fiscal field.

    "And this means a compromise to create a new European fiscal authority which would guide the fiscal policy in the euro zone, harmonize the fiscal policy of member states and enable a centralized control of (public) finances," he added.

    He also said the authority would be in charge of managing European debts.

    (Reporting by Julien Toyer; Editing by Mike Nesbit)