Brussels, 27/01/2010 (Agence Europe) - Remedying the structural weaknesses in our economies and increasing growth potential, improving the coordination of the European economic policies and shoring up the single market whilst continuing with the reform of the financial system: these are the ambitions of the trio of Presidencies (Spanish, Belgian and Hungarian). Presenting the MEPs of the committee on economic and monetary affairs with the outlines of her planned actions over the next six months, on Tuesday 26 January, Spanish Economy and Finance Minister Elena Salgado Méndez summed up the challenge to the European economy as follows: reinventing itself in order to continue to generate wealth and well-being.
Economic and financial context. "We are starting to see signs of recovery and stabilisation of the international financial system", Elena Salgado observed. The principles of a strategy to come out of crisis were laid down under the Swedish Presidency, to help towards the viability of the public finances and stable, balanced and sustainable growth. This strategy is based on the implementation of the Stability and Growth Pact (SGP), a "fundamental element" which must be applied "with common sense, coherence and strictness", she stressed.
When asked about the situation in Greece, Salgado ruled out any possibility of intervention of any kind to support the economy of the country. The Council will do no more than to continue the excessive deficit procedure and examine an action plan put together by the Commission to improve the statistics. "No other action is planned", she said.
As for the absence of any reorganisation of the banks' balance sheets, Salgado acknowledged that "not all of the assets featuring on the balance sheet of the financial institutions appeared on the surface". But if the IMF is pessimistic, the ECB is more moderate in its statements, which first and foremost illustrates the importance of evaluating assets "on the basis of common criteria".
Financial supervision. After the political agreement on micro-and macro-prudential supervision (EUROPE 10032), "the Council is prepared to work on an agreement (Ed: with the Parliament), without any pointless delays, so that the new financial supervision structure can enter into force this year". Although she remained inclined to negotiate with the EP on the concrete bases, however, Salgado opportunely pointed out that the agreement of the Council had been reached "unanimously" and that it would be necessary to take account of this. Discussions are likely to be difficult. "The Council is going to have to make an effort", warned José-Manuel Garcia Margallo y Marfil (EPP, Spain), who pointed out that the four main political groups of the EP had said that the agreement under the Swedish Presidency was not to their liking. "The Council and the Presidency need to have room for manoeuvre", added Jean-Paul Gauzès (EPP, France), pointing out that the Council is now condemned to agree with the EP (co-legislator). "We will use what we have", said Salgado, stressing the need for an early agreement with the EP.
2020 strategy. In the view of the minister, "it is very important that we do not just lay down objectives, but also make sure that we have the necessary resources to achieve these objectives". For the time being, however, Salgado did not wish to move forward on the direction the work is likely to take, leaving it up to the European Council (of 11 February) to provide a framework for the debate. In terms of governance, the minister gave no specific answer to the questions put by Pablo Zalba Bidegain (EPP, Spain), who asked her to clarify what she felt would be the instruments needed for a greater commitment on the part of the member states: "soft" measures (benchmarking, peer review) or "sanctions"? What would be the role of the various players (Commission, Council, EP, member states) in monitoring progress? "The fact that together, the member states agree to binding elements must be a key element of the new strategy", she stressed. As regards what will happen if they are not observed, this question remains open at this stage. The open method of coordination (OMC)? "There is a way of improving it, but I stress the fact that I cannot go any further", said Salgado, who chose instead to leave the field for the heads of state. "There is no formal proposal in place as yet", she explained, but that should not be the case by the time of the European Council, as the leaders of the EU want an open debate, without taking a concrete document as their basis.
External role of the EU. The Spanish Presidency intends to make sure that the EU plays a leading role in the field of global economic cooperation (particularly at the G20), and that it actively contributes to the process of reform in the international financial institutions. Within these bodies, the vision of the EU must be presented coherently, Salgado stressed. In order to renew the external mandate of the European Investment Bank (EIB), we must "take account of the growing importance of certain regions, such as Latin America and Asia", and also the countries on the southern shore of the Mediterranean, she suggested (the current distribution makes up the lion's share of funding to the countries on the outskirts of the EU). (A.B./transl.fl)