“The Challenges before the Eurozone”, keynote speech by H.E. Philippe Autié, Ambassador of the Republic of France to Bulgaria
(March 1st, 2012, 11:00 a.m., Sheraton Hotel Sofia)
In his speech Ambassador Autié underlined the aspiration of the European countries for preserving the euro, the importance of initiating the necessary reforms and the compliance of the European discipline.
The French Ambassador pointed the extension of the European integration as one of the three main challenges facing the Eurozone in the future. According to the Ambassador Autié the European society has realized the necessity of major European integration but this is a long and complicated process. H.E. Philippe Autié presented the main role of the industry as a leading factor for the integration between the countries.
In the course of the aforementioned motions, the French Ambassador noted the necessity of tax harmonization as a condition for obtaining stable Currency alliance and also as a sign of solidarity among the countries in the Eurozone. The Ambassador stated that the tax harmonization would not deprive parts of the competitive powers of the countries in the EU.
As third challenge, which was brought into line by the ambassador was the amalgamation of the public debts through issuing of joint debts securities, known as “euroshares”, which at this moment are causing arguments among the countries in the EU. The Ambassador was categorical that there will be no solution of the crisis without an agreement between France and Germany because these two countries form 50% of the Gross Domestic Product of the Eurozone and 40% of the Gross Domestic Product of the EU.
The French Ambassador reminded that the main reason of the present crisis is that some countries before entering into the Eurozone have had middle interest levels of 15-16% in the bank system and after their incorporation they received access to cheap financial funds and thus the interests plummet to a level of 3%. Just these “easy money” according to the Ambassador led to the accumulation of serious private debt in most of the countries.
In summary the French Ambassador pointed the important message by the ECB towards the countries’ markets given on 21th of December through lending low interest loans to the commercial banks.