Bonn, 09/12/2009 (Agence Europe) - The European People's Party (EPP), meeting in Bonn under the chairmanship of Joseph Daul, president of the European Parliament group, for two study days preceding the party's Congress, reviewed the problem of breaking the financial crisis and the issue of climate change, at sessions which were attended by members of the governments of the member countries and representatives of civil society. Two resolutions will be put to the vote at the Congress, to be held on 10 December.
The financial crisis requires a radical reflection on the part of the decision-makers
We do not need rules, we need "commandments and values", began the Austrian member Othmar Karas, opening the debate on the financial crisis: those taking part agreed with this view, speaking out in no uncertain terms against the behaviour of the world of finance, but also against the inaction of the States, which they believe took the "laissez-faire" approach too far.
"We need to get more serious in budgetary policies", said Anders Borg, Sweden's Finance Minister, who called for an end to unsustainable public deficits, adding that even in periods of prosperity, some countries have allowed indebtedness rates to rise too high. We must rediscover the value of stability: "We cannot have a strong economy with debts", argued Mr Borg, calling for stability to be reflected in effective budgetary measures. Certain sectors, such as tobacco and alcohol, are "undertaxed" within the Union, he believes. If we need to be "firm" on expenditure, then we must use the resources to channel them into productive expenditure (infrastructure or research, etc), and we must think more about the consequences of the ageing populations.
During the financial debacle, all control failed, said Günther Öttinger, the German Commissioner designate: the banks and financial institutions saw only profit, turning a blind eye to risk, and those who should have warned them of the dangers did not do so. Mr Öttinger uttered harsh words against the financial institutions of his own Land, Baden-Württemberg, and against those of other regions: "No authority", he said, "fulfilled its duty of supervision as it should have done". Mr Öttinger also referred to the structural changes experienced by certain sectors, which had previously been driving forces behind the economy (such as the automotive sector in Germany). In conclusion, he said, let us make no doubt that things will never be the same again after the crisis: "Will we be capable of greater modesty and more industry?"
Yes, lessons must be learned from the crisis, agreed Jürgen Stark, a member of the board of the European Central Bank. Mr Stark can see a few signs of recovery, but stresses that it is very hard to find the perfect moment for the "phasing out" of the measures taken to combat the crisis. Instead of that, in fact, it would be better to bring in crisis prevention measures and reiterate that the main objective of the banking system is to support the economy. Mr Stark also questioned policy: "This also failed", he said, urging the States not only to bring in rules, but also to put an end to "stop and go" politics, replacing these with clear medium-term economic orientations. Referring to the proposals of the Swedish Presidency to face the financial crisis (which were discussed at the economic committee of the Parliament on 8 December), Mr Stark reminded his audience of Jean-Claude Trichet's words to the committee: it is the ECB's view that its own proposals were better, but it could live with those of the Swedish Presidency. Mr Borg acknowledged that some people would have preferred to go further regarding the mediation rules in the supervisory structure, but felt that a compromise was needed: "We are in real countries, with real money, and real taxpayers".
Kurt Lauk, the president of the Economic Council of the CDU, was highly pessimistic: "The casino is working flat out" he said, referring to the case of Goldman Sachs, and it will continue to do so if we do not bring in effective European controls.
In favour of a better integration of the new Members of the Union
How can we help to improve the integration of the new member states of the Union? Opening the debate, the president of the European Parliament, Jerzy Buzek, started by stressing that since they joined, these countries have experienced "a normality which we previously only knew from our parents' stories", that entrepreneurship is alive and well in these countries, but that it needs encouraging. He believes that the priority now should be to prevent an exodus of people who should remain in their countries and make a contribution towards their development.
Enlargement brought with it a positive energy which has benefited the Union as a whole, said the Bulgarian foreign affairs minister and commissioner designate of her country, Rumiana Jeleva, who pleaded for the gulf which still separates the so-called "old" and "new" member states to be bridged. If the current crisis is not properly managed, this will harm everybody, said Ms Jeleva, appealing to the principles of solidarity and cohesion, which are the bedrock of the success of the European Union. However, this solidarity presupposes the existence of adequate financial instruments and resources.
In the view of Mikolaj Dowgielewicz, Polish Secretary of State for European Affairs, the priorities to reinforce cohesion within the Union are as follows: - making it possible for all states which wish to do so and which are capable of doing so to join the eurozone; - shoring up the internal market, particularly as regards services, with a revision of the directive on services: - not limiting cohesion aid to the least developed countries, but acting at regional level above all, in every country of the Union; - putting an end to all talk of social dumping, instead of fighting to plug the knowledge gap between the east and west of Europe; - developing energy infrastructure to reduce the Union's dependence on the outside.
Two former regional policy commissioners took part in the debate. Michel Barnier, France's commissioner designate, pointed out that in 2002, the cohesion policy had been "viciously attacked"; but the "great debate" which followed (with the image of a train which cannot go on if its last wagons are late) highlighted the importance of cohesion policy for the success of the Lisbon Strategy. In the view of Danuta Hübner, currently the president of the regional committee of the EP, cohesion means "giving everybody the right and indeed the duty to make a contribution to developing European integration".
Climate change: in favour of a strong agreement in Copenhagen and measures with immediate results
What is the EPP's position on what needs to be done in Copenhagen? The group, said Karl-Heinz Florenz, is pleased to see that a second "pillar" (maintaining competitiveness) has come on top of the emissions reduction pillar. However, Mr Florenz warned Europe, and its industry in particular, that even though it is still a technological innovation leader, it risks being overtaken by the United States, whose industrial sector, which is moving faster than politics, has fully grasped the potential advantages of innovative products. Mr Florenz struggles a bit with the Commission's notion of "benchmarking": under its criteria, the "leaders have not yet been born", he lamented. The German industrial sector is in favour of the energy/climate pact, and it sees itself as "part of the solution", as it has the technical capacity. So saying, the CEO of the German employers' association, Werner Schnappauf, spoke in favour of a binding agreement (and only one, valid for everyone, he stressed) subject to proper controls rather than just vague commitments. Mr Schnappauf expressed some concern at Mr Dimas's words, which raised the possibility that the Union could go beyond a 20% reduction: this is unacceptable, unless the others are also prepared to do more (however, he confirmed that the German government has said that it is prepared to exceed by 10% the rate agreed to by the EU). Climate protection does not mean waste, he concluded, adding his voice to those who plead in favour of measures which could be seen as modest, but which could have immediate results. Too often, we seem to want to "do the hardest thing first of all", said the session chairman, Gunnar Hökmark, rather than be satisfied with simple but effective measures. One area in which much could be done very quickly and at little cost is building sanitation.
The insurance sector has long been aware of the dangers of climate change, said Peter Hoppe, Director of Geo Risks Research/Environmental Management, quoting the results of research into the rising ocean levels going back to 1973. Mr Hoppe also presented the project Desertec for clean electric energy production in North Africa: there are no technical problems with this project, but political will is required. Many MEPs spoke with emotion of forest fires, among them Jean-Pierre Audy, would like to see a proper European forest policy. He also pleaded in favour of a World Environment Organisation, with a body to settle inter-governmental disputes, along the lines of the WTO's dispute settlement body. Angelika Niebler, who resumed the debate with a question on the EPP's position in discussions on climate, liked this idea. This position, she concluded, encapsulates a rejection of ideology, but with a strong commitment to protect a sustainable climate which is fully compatible with competitiveness targets. (L.G./transl.fl)