Pierre Moscovici: Finance commissioner should also run Eurogroup

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Pierre Moscovici, the European Commissioner for financial and financial affairs, called for Germany to be greater open to funding, France to supply credible reforms, and for a greater transparent Eurogroup to kick-begin deeper eurozone integration.

Speaking to POLITICO’s EU Confidential podcast, Moscovici said: “It’s clear without a robust agreement among France and Germany, not anything happens,” adding, “you want to have French ideas asking the Germans to do extra for investment.”The French commissioner also recommended a fully shaped eurozone finance minister and admitted that he’d be glad to do the activity. “I would be honored, thrilled, etc. To be in that characteristic, I had been preparing for that,” he said, before acknowledging that the EU is ways from creating this sort of function.

As a stepping stone, Moscovici thinks his successor as the following commissioner for economic and financial affairs must also assume the Eurogroup’s presidency. “Without the Commission in that piloting feature, you just might have guidelines without flexibility, without intelligence, and no democracy. The Commission at least is responsible in front of the [European] Parliament.”Moscovici, who said he had attended greater than eighty Eurogroup conferences in approximately Greece, stated he desired deep reform of the way the membership operates. “I am very annoyed,” he said. “We are deciding in the back of closed doorways the destiny of eleven million people,” adding that the Eurogroup occasionally works with poor records and that its loss of accountability is unacceptable.

Structural reform with a human face is Moscovici’s antidote to the brutal photograph of austerity the EU’s establishments have projected in the latest years. “I agree that we want structural reforms in Europe. But structural reforms don’t simply ache. It doesn’t mean that somebody must be punished,” he said.

That consists of countrywide authorities taking extra responsibility for the drawn-out Greek turnaround. His message to Greeks: “You’ve made you’re a part of the process. You have taken responsibility. Now we want to take ours.”

Meanwhile, Moscovici rejected the concept of remodeling the European Stability Mechanism right into a European Monetary Fund — except it comes with precise democratic controls.


“We don’t need extra technocracy, we need less technocracy, and we need extra transparency,” Moscovici said.

Let’s say the distributor buys from different growers and is carrying a bunch of different products. The distributor is going to warehouse it and deliver it based on the need of their clients. This would be ineligible for P.O. financing but not for factoring (P.O. Finance companies never want to finance goods that will be placed into their warehouse to build up inventory). The factor will consider that the distributor is buying the goods from different growers. Factors know that if growers don’t get paid, it is like a mechanics lien for a contractor. A lien can be put on the receivable all the way up to the end buyer, so anyone caught in the middle does not have any rights or claims.

The idea is to ensure that the suppliers are being paid because PACA was created to protect the farmers/growers in the United States. Further, if the supplier is not the end grower, then the finance will not have any way to know if the end grower gets paid.

Example: A fresh fruit distributor is buying a big inventory. Some of the inventory is converted into fruit cups/cocktails. They’re cutting up and packaging the fruit as fruit juice and family packs and selling the product to a large supermarket. In other words, they have almost altered the product completely. Factoring can be considered for this type of scenario. The product has been altered, but it is still fresh fruit, and the distributor has provided a value-add.

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