Brussels, 17/12/2010 (Agence Europe) - The European Union is coming to the end of a difficult year that has endured the Greek and Irish financial crises and been marked by Germany's reluctance to show concrete solidarity. It is coming to the end of the year with an agreement that creates the conditions for a permanent mechanism to protect not only the euro but also the eurozone from speculative attack and doubts expressed by the political leaders and their countries. At the close of the European Council on 16 and 17 December, which brings us to the end of the half-year of Belgian presidency, the heads of state and/or government of the 27 EU member states have expressed unanimous approval. German Chancellor Angela Merkel considers the most important result is that they were all in unison in saying that the euro is a common currency which, in all their interests, must be strong and stable. French President Nicolas Sarkozy expressed the view that “the end of the euro would be the end of Europe”, and hoped the eurozone would “go further”. Furthermore, countries planning to enter the euro area - such as Estonia - are encouraged by the agreement reached in Brussels. “We are not afraid. The euro is a strong currency”, said Estonian Prime Minister Andris Ansip. The countries not yet ready to take the leap, such as Poland, do not rule out joining, saying it is better to be protected than not.
The following pages of this newsletter set out the conclusions of the European Council, also to be found in annex, and the statements made by leaders after the meeting. The very cordial atmosphere that reigned at the summit, where there was neither polemic nor altercation, is the result of President Herman Van Rompuy's excellent preparation, and is also due to the conviction nurtured by the heads of state and government throughout this gruelling year of the need to safeguard the euro and its stability. The 16 eurozone countries state they are willing to do whatever it takes to ensure stability across the area and indicate seven points on which give their pledge: - fully implementing existing programmes for Greece and Ireland, keeping up budgetary vigilance, speeding up structural reforms to promote growth, strengthening the Stability and Growth Pact and putting a new macro-economic surveillance framework in place as of summer 2011, ensuring availability of sufficient financial support as part of the European Financial Stability Facility (EFSF) pending the entry into force of the permanent mechanism, bolstering the financial system, and expressing unreserved support for the work of the ECB, which has just doubled its capital.
The Council's conclusions come just at a time when IMF Director General Dominique Strauss-Kahn of France is making his lack of confidence in the EU's ability to obtain results known and is criticising the “over-fragmented” method and the slowness of Community decisions. For once, it would seem that Strauss-Kahn's views are being challenged but there is still much to be done before the willingness shown by Van Rompuy to do everything possible to stabilise the euro can be given concrete substance. Coming negotiations, under the aegis of Hungary which is to take over from Belgium at the helm of the EU when it takes on the rotating EU Council presidency for the first time ever, will not be easy and will not be trouble-free. European Commission President José Manuel Barroso gives his assurance that member states are willing to meet their “concrete commitments”. We shall see in what terms and within what a timeframe “but for now, the Cassandras who prophesised against the euro have been proven wrong”. Deadlines are known - modification of the Treaty must be done by June 2011 so that ratifications may be concluded in good time for entry into force on 1 January 2013, and the permanent anti-crisis mechanism must be ready six months later at the latest upon expiry of the provisional mechanism.
Also, while they are negotiating new restraints and new commitments, member states must continue to alleviate their debt, reduce their budgetary deficits, and seek to develop reform to promote and accelerate growth which, for now, is not managing to produce the new wealth or new jobs in particular. The EU, like the United States moreover, has not yet recovered everything that it lost during the 2008 crisis. The person in charge of the Eurozone, Luxembourg Prime Minister Jean-Claude Juncker, considered it useful to recall at the end of the summit that Europe cannot be reduced to economic governance and, in this context, to tax harmonisation. There must also be a social side, closing the gap between social policies.
For once, the European Council did not look for a way out of the European Union's domestic problems within an international context. Heads of state and government mainly focused on their economic and monetary problems and did not send out any messages to the world as a whole, although they did recognise Montenegro's applicant country status and express their concern and impatience towards the situation in the Côte d'Ivoire (see related article in our Day in Politics). (Gp/transl.jl)