[ti:EU Officials Urge Tighter Fiscal Rules for Euro Countries]
[ar:June Simms]
[al:Economics Report]
[by:www.21voa.com]
[00:00.00]This is the VOA Special English Economics Report.
[00:05.89]Stock prices around the world rose
[00:09.93]and fell this week on news of efforts
[00:13.51]to help countries using the euro.
[00:16.83]The European Central Bank took action Wednesday
[00:21.81]to support the worldwide financial system.
[00:25.18]Central banks in Britain, Canada, Japan,
[00:29.77]Switzerland and the United States also acted.
[00:35.12]The banks made it less costly for other countries
[00:39.78]to borrow American dollars.
[00:42.43]The United States Federal Reserve said
[00:46.68]the joint effort was meant to help central banks in Europe
[00:51.28]provide financial support to nations that need it.
[00:55.94]The action sent American stock measures
[01:00.77]up more than three percent.
[01:03.41]On Thursday, European Central Bank President Mario Draghi
[01:09.30]suggested that the ECB may provide new financial support
[01:15.09]for European countries struggling with debt.
[01:19.47]But first, he said, euro-area countries
[01:23.67]must establish trust by enacting big financial reforms.
[01:29.87]He called for a new fiscal compact, or financial agreement.
[01:36.52]MARIO DRAGHI: "A credible signal is needed
[01:38.48]to give ultimate assurance over the short term.
[01:42.03]What I believe our economic and monetary union needs
[01:46.11]is a new fiscal compact,
[01:48.22]a fundamental restatement of the fiscal rules
[01:52.35]together with the mutual fiscal commitments
[01:55.02]that euro area governments have made."
[01:57.32]Seventeen members of the European Union
[02:00.73]share the euro currency.
[02:03.18]Concern over its future has been building in recent years.
[02:08.66]The Greek debt crisis, rescue loans for Ireland and Portugal,
[02:15.19]and worries over Italy's debt have all increased fears
[02:20.83]that Europe may have to abandon the euro.
[02:24.58]The euro is the world's second most traded
[02:28.83]and second most used reserve currency
[02:32.98]after the United States dollar.
[02:36.18]European finance ministers failed
[02:39.73]to agree on a plan to provide economic support
[02:43.72]for debt-troubled countries last month.
[02:47.27]European Economic Commissioner Olli Rehn says
[02:51.91]the need for agreement is urgent.
[02:55.22]OLLI REHN: "Overall, I could say
[02:56.96]that we are now entering the critical period of 10 days
[03:02.02]to complete and conclude the crisis response
[03:06.06]over the European Union."
[03:08.10]Financial officials say a lack of economic
[03:12.66]and financial cooperation
[03:15.03]is at the heart of the two-year debt crisis.
[03:19.32]Dutch Finance Minister Jan Kees de Jager 
[03:23.85]said the need for tougher rules is deep.
[03:26.54]JAN KEES DE JAGER: "Lack of economic reforms
[03:28.48]and lack of fiscal discipline has brought us into this crisis.
[03:31.97]So you also have to address these fundamental issues."
[03:35.21]That means euro-nations may have to surrender some power
[03:40.05]over their budgets to the European Union.
[03:43.64]And that's the VOA Special English Economics Report.
[03:48.79]Lisa Bryant contributed to this report.
[03:52.44]I'm June Simms.