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(Updates with quote in second paragraph.)
Nov. 29 (Bloomberg) -- European Union Industry Commissioner Antonio Tajani said he favors a central bank in Europe modeled on the U.S. Federal Reserve.
“My personal position is in favor of a European bank similar to the U.S. Federal Reserve,” Tajani, who is also vice president of the commission, said in Madrid today. “If there is a reform of the treaty, we need a strong bank for a strong currency, and a strong European policy.”
The European Central Bank and Germany are resisting pressure to step up bond purchases and the Organization for Economic Cooperation and Development yesterday added to calls for the Frankfurt-based bank to step up its response to the crisis. As contagion threatens to reach the euro region’s core, Italian 10-year yields rose to 7.37 percent today, while investors demanded 6.57 percent to lend to Spain.
Tajani, who met with Spanish Prime Minister-elect Mariano Rajoy in Madrid, said the leader who won a landslide on Nov. 20 is studying proposals for an overhaul of labor rules. Tajani said he liked Rajoy’s plans for the job market and deficit cuts, without giving more details.
--Editors: James Hertling, Craig Stirling
To contact the reporter on this story: Emma Ross-Thomas in Madrid at firstname.lastname@example.org
To contact the editor responsible for this story: Craig Stirling at email@example.com