Turkey’s deputy prime minister has urged eurozone members to adopt a single fiscal policy and a strong banking policy framework.
“A single monetary policy in macroeconomic management and 17 different fiscal policies cannot co-exist. That just doesn’t work. And we have seen that it did not work,” Babacan told on Sunday a press conference in the Finnish ski resort town of Saariselka, where he participated in an informal meeting of EU leaders that dominated the Greek Cypriot banking crisis.
Babacan said the EU monetary union remained incomplete without joint framework for fiscal and monetary policies that functions through proper implementation and monitoring mechanisms.
Babacan said the method to solve the crisis in Greek Cyprus was unique in its characteristics, adding that it should not set an example for other eurozone countries.
“At the heart of the matter is confidence to the banking system. The Greek Cypriot incident should not be allowed to hurt confidence in eurozone banking system,” Babacan said.