September 28, 2011Barroso Addresses EU Parliament
In an annual speech to the European Parliament, European Commission President Jose Manuel Barroso said that the eurozone sovereign debt crisis posed the "greatest challenge" (DeutscheWelle) in the history of the European Union and called for further EU integration to stem the tide. He maintained that Greece, the epicenter of the crisis, would remain in the single currency zone.
Barroso also proposed a tax on financial transactions (FT) in the EU, which could bring in as much as $50 billion in new revenue per year. He is expected to outline plans for greater fiscal integration and the introduction of common eurobonds in the coming weeks.
Barroso's speech came as Greece teeters on the brink of default. Eurozone governments are in the process of ratifying an agreement to expand the temporary eurozone bailout mechanism, the European Financial Stability Facility, and provide Greece with a second rescue package. The German parliament (Reuters) is set to vote on the plan tomorrow.
