Brussels, 04/01/2011 (Agence Europe) - What is to be expected from 2011? To examine this question, Open Europe has published a brief outline of what to expect. 2011 will be absolutely crucial for the euro, with eurozone governments having to face record refinancing levels and possibly provide further bailouts to the banks, to help them increase their liquidity and help them find a crisis-exit strategy. In 2011, the EU will also begin negotiations on the future of the long-term budget, with the United Kingdom playing a key role in these negotiations.
Mats Persson, the director of Open Europe, explained that “2011 will pose fresh challenges to the eurozone as several member states continue to struggle with huge debt mountains, fragile banking systems and low growth. The EU is at a crossroads and it will have to choose: take a radical step towards an economic and political union in the hope of saving the single currency - or go the other way. But any further step towards an economic union, with more bailouts and supranational budget rules, would radically widen the EU's democratic deficit”. With regard to the first round of negotiations on a long-term European budget, Mats Persson stated that “with all of Europe in austerity mode, root and branch reform of the EU budget is the only acceptable option - it simply has to become better value for taxpayers money”. The director of Open Europe noted that “David Cameron has a unique opportunity to set the agenda in these negotiations, but he must focus on both the substance of the budget as well as the overall size. Freezing the EU budget without reform would be a missed opportunity”.
Open Europe is an independent think tank based in London and Brussels and actively lobbies for reform of the EU. Further information on: http://www.openeurope.org.uk (Com-G. B./transl.fl)