Belgium opposes Franco-German eurozone governance

4th February 2011, Comments 0 comments

Belgium's Prime Minister Yves Leterme said Friday he is "absolutely not in agreement" with a French-German plan to harmonise eurozone governance that includes a bid to do away with index-linked wage rises.

"There must be more economic cooperation, but member states must be left the room to carry out their own policies," Leterme said on arriving at a one-day European Union summit.

"Each member state has its own accents, its own traditions. We will not allow our social model to be undone," he added.

Germany and France are asking European neighbours on Friday to back unified, cross-border policies in a bid to start governing the 17-nation eurozone economy as one.

A six-point programme they have drawn up would see inflation-indexed wages disappear and corporation tax regimes harmonised to a large degree.

Educational qualifications would be recognised across borders, to help labour mobility, while a commonly agreed system for managing banks in trouble would also be installed.

© 2011 AFP

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