EU executive to say euro zone may need treasury, minister, budget

People familiar with the European Commission reflection paper told Reuters the scenario of a finance minister managing common revenue, spending and borrowing had been worked on for many months in Brussels, but now appears a much more likely option since centrist former banker Macron won power on May 7.

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The treasury could manage what the Commission calls a "macroeconomic stabilization function" - EU jargon for a euro zone budget to mitigate economic shocks, for instance used to support investment, which is the first victim of a downturn.

Another option could be for such a budget to operate as a re-insurance fund for national unemployment schemes during economic bad times, when national budget deficits run high, but this would require prior convergence of labor market policies.

Finally, the "stabilization function" could be a rainy day fund, regularly accumulating money and disbursing to cushion a large shock and could even have right to borrow, though within limits and with rules on saving money when times are good.