Hans-Werner Sinn

Nationalökonomie & Finanzwissenschaft

EU unemployment scheme - Brussels's controversial plan for the euro

Interview mit Hans-Werner Sinn, dpa platform, 23.09.2014, S. 12

Hans-Werner Sinn, president of the Institute for Economic Research (Ifo), has argued against the creation of a eurozone budget prior to that of a federal state. "I don't think it's reasonable to put huge rescue activities and systems of transfers in place without all member states having signed a sort of insurance agreement on a mutual basis beforehand by which they found the federal state and unite the armies of Europe and subtract them from national control," he writes in Gefangen im Euro (Trapped in the Euro). "I insist: beforehand, not afterwards."

The economist compares a premature eurozone budget to an opportunistic marriage: "If you allow the exaggerated caricature, which in my view is nevertheless appropriate: It's like in a couple, where one partner is in love and wants to marry, and the other one mainly wants to get ahold of his partner's money, preferably before signing the prenup."