Brussels, 28/10/2010 (Agence Europe) - Meeting in Brussels on Thursday 28 October ahead of the European Council, European Liberals gave their agreement to the creation of a permanent mechanism that would assist a eurozone country unable to refinance its debt on the markets. “A credible permanent crisis mechanism is needed”, Finland's Prime Minister Mari Kiviniemi said. In her view, that instrument should clearly stipulate that “creditors should carry the burden of any future restructuring together with the member state in question”. The European Council, she said, should ask the Commission to prepare this mechanism in close cooperation with the member states and the president of the European Council, Herman Van Rompuy. If necessary, the treaty should be amended, she added.
Danish Prime Minister Lars Lokke Rasmussen hoped the European Council would endorse the recommendations of the “taskforce” on economic governance headed by Herman Van Rompuy (see EUROPE 10241). Advocating “clear procedures” on the way to move forward towards a permanent crisis management mechanism, he said, however, that he was “not totally convinced” by the need to modify the Lisbon Treaty in order to set up such an instrument, while aware of the legal problem encountered by Germany. Chancellor Angela Merkel trusts the permanent crisis management mechanism will have a sound, legal base, with the exercise leading to modification of the Lisbon Treaty. Berlin fears that the creation of such a mechanism, if the treaty remains unchanged, would be rejected by the German constitutional court.
Suspension of voting rights. The European Liberal Party (ELDR) does not, however, support the idea of suspending the voting rights of a member state that breaches the future rules of the stability and growth pact. Rasmussen said he was “sceptical” about evoking this question. Brian Cowen, the prime minister of Ireland, made a clear distinction between the two proposals on the table which would require review of the European treaty, according to Germany and France: - on one hand, suspension of voting rights is a “very controversial” idea that does not have his country's support and, on the other, the creation of a permanent crisis management mechanism for the eurozone is supported by all. He felt one should now define the characteristics of this mechanism and then decide if it can be achieved within the existing treaty framework or whether institutional revision is required. (M.B./transl.jl)