ECB OFFICIAL SAYS EU NEEDS SOVEREIGNTY IN BUDGET-SETTING
- Countries receiving bailout funds from the European Union should also relinquish some sovereignty in budget-setting to the EU, European Central Bank Governing Council member Ewald Nowotny said on Thursday, Мay 10.
Reuters reports that Nowotny, who heads the Austrian National Bank, also said in a speech at a central bank conference that budget consolidation programs need to be combined with measures boosting economic growth.
"A political union needs more than a tight set of rules and restrictions, namely central decision-making in fiscal policy, or, at least a strong say for Community institutions in recipient countries' budget policies," Nowotny said.
Nowotny also indicated that the countries receiving aid - Greece, Ireland and Portugal - need to stay the course.
"I do not see a credible alternative to the procedures developed in the context of specific aid programs," he said.
At the same time, he warned against setting too ambitious goals for austerity programs, saying that revising them later could hit investor confidence. But they must also give room for growth.
"Consolidation programs must be seen in the context of growth prospects," Nowotny said. "It is possible and necessary to combine consolidation and growth strategies."
- 1804 Mamed Khan of Yerevan, knowing of the Russian force's progress, orders the migration (for the duration of the war) of about 20000 Armenians from the Khanate of Yerevan to Ghars.
- 1810 Birth of Gabriel Aivazovski in Feodosia (Ukraine). He died in 1880 in Tbilissi (Georgia).
- 1838 Birth of Viscount James Bryce (statesman). He served under Prime Minister William Gladstone. He was a founder of the League of Nations. He wrote on jurisprudence and political science. He vociferously condemned the Armenian Genocide by the Turkish government. He died in 1922.
- 1848 The Lazaryan College (Moscow) becomes the Institute of Western Languages.
- 1855 The Sultan orders, for the first time, the draft for the Christians in Turkey. The order was ineffective.
- 1920 Armenia's Revolutionary Military Committee in Alexandropol and proclaims the establishment of Soviet power in Armenia.
- 1923 Birth of Heydar Aliev, First Secretary of the Communist Party in Azerbaijan, Head of the Azeri Turk subdivision of the Soviet KGB, Member of the USSR Politbureau, and Head of Atheistic Propaganda under the Soviet regime. Committed Genocide against the Armenians of Nakhitshevan and Artsakh. Took over the presidency of Azerbaijan in 1993.
- 1941 The Ten-day Festival of Armenian Literature starts in Moscow (Russia).
- 1943 Garegeen the First (Hovsepyants) is anointed Catholicos of Cilicia in Antilias' Cathedral.