By Martin Banks - 10th August 2011
European leaders have got to stop making quick fix-it solutions
Guy Verhofstadt
ALDE group leader Guy Verhofstadt has given a cautious welcome to the European Central Bank's decision to implement its bond buying programme.
The former Belgian PM generally welcomed the move but added a note of caution.
He said, "In view of the severity of the crisis, further exacerbated by the downgrading of the US ranking, European leaders have got to stop making quick fix-it solutions to the very serious debt crisis.
"Rather than prepare the next plan for Spain or Italy, they must tackle the root cause of the problem. Their obfuscation and policy of too little too late has provided no lasting solution and only caused great pain to the tax payer and to European competitiveness."
Verhofstadt added, "It is indeed scandalous that it is the markets that are forcing the long needed changes and not political courage and vision."
"Only a federal solution can provide the union with the effective tools it requires.
"National leaders must stop deceiving themselves that national and piecemeal solutions will suffice. Europe needs an integrated economic and fiscal policy for the eurozone and the urgent establishment of a eurobond market."
In a recent online Economist debate on the future of the euro an overwhelming majority of readers supported a "federal" solution.
Verhofstadt, who took part in the debate, said, "The events in both the US and the EU have demonstrated that the political systems must have the resources to find solutions.
"In both cases the political systems and leaders have been found wanting. The system must therefore be urgently changed. European leaders have the choice - greater integration or the potential break-up of the eurozone.
"And they cannot wait until September."
