Finance minister role could ‘damage the reputation of the euro zone,’ think tank warns

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Emmanuel Macton, Jean-Claude Juncker and Angela Merkel have all supported the idea of a new finance minister overseeing the eurozone

The creation of a euro zone finance minister could “damage the reputation” of the economic bloc, a think tank warned Wednesday.

The Centre for European Economic Research (ZEW) said that a new position spearheading fiscal policy would add little value to the continent.

“The creation of a European finance minister should by no means be a priority in Eurozone reform. We run the considerable risk of creating a new, impressive title with no actual substance,” said Friedrich Heinemann, head of research at ZEW’s public finance department.

“This could ultimately end up doing further damage to the reputation of the euro zone.”

In 2017, French President Emmanuel Macron suggested that the euro zone could benefit from a new finance minister as part of his ideas to reform the continent. German Chancellor Angela Merkel has also backed the idea of a new finance and economy minister for Europe.

And European Commission President Jean-Claude Juncker said last year that a euro minister would in effect lead all euro zone finance ministers and be made accountable to the European parliament, Reuters reported.

A future euro minister could also sit within the International Monetary Fund (IMF).