Rehn given role as defender of the euro

EUROPEAN COMMISSIONER for economic and monetary affairs Olli Rehn has been appointed head of the euro as part of yesterday’s package to deal with the economic crisis.

In a speech to the European Parliament yesterday, just hours after the deal had been agreed, José Manuel Barosso, president of the European Commission, said Mr Rehn’s appointment as commission vice-president for economic and monetary affairs and the euro was of symbolic as well as substantive importance.

“Having a commissioner specially dedicated to the euro, we assert that we want the euro governance to take place inside the community method and with the community institutions,” Mr Barosso said.

Appointing a head of the euro was the best way to guarantee “the independence, objectivity and efficiency” of the commission’s responsibilities in the area of economic governance of the union and of the euro area in particular, he said.

Mr Barosso also said a new package to further deepen economic governance in the EU would be brought forward next month.

This would include regulations on “deeper fiscal surveillance” and would assist toward “true economic union, through increased convergence”.

Mr Barosso also outlined the financial package agreed in the early hours of yesterday to MEPs, saying it demonstrated the unity, solidarity and determination of the European Union.

He also told MEPs he would bring forward proposals to change the Lisbon Treaty.

“Any possible treaty change should not appear as the immediate solution to the current crisis but it is true that, by working to embed stricter discipline and stronger governance into the euro area in particular, we may help to prevent a future crisis,” he said.

He pledged to consult widely with the European Parliament on the proposed changes.

Mr Barosso said he was pleased with Italy’s “strong commitment” to undertake further structural reforms, including increasing the pension age of its citizens.

“It is now imperative that Italy implements these commitments fully, and according to a clear and coherent timetable,” he said.

Also addressing the parliament, Herman van Rompuy, president of the European Council, said he was “deeply convinced” the markets would now give time for the package to be implemented.

Most MEPs in the chamber welcomed the financial package and applauded the appointment of Mr Rehn.

But they raised concerns about some aspects of the deal, including whether the €1 trillion bailout fund would be sufficient.