Most important aspects accomplished. Let's get back to some constructive criticism. Yesterday, this column displayed a rather exasperated tone with regard to the infernal Eurosceptics who failed to grasp the importance of what happened on Friday night and last Saturday. This was true for much of the press and Sunday turned out to be a bad day: most of the papers are not printed that day and during the days that followed, the Japanese tragedy largely monopolised our attention. Therefore, in the realm of European affairs, the Eurosceptics had free reign. Our press agency did not flinch from its task and provided commentaries and detailed reports on the informal euro zone summit, in addition to publishing a number of texts on the matter (which will acquire historic significance). Now, however, after pointing out that each country is free to leave the eurozone and the EU, let's look ahead.
The European Council on 24 and 25 March will not be able to change what the euro zone countries have decided at all. They will be able to provide further explanations, clarify the intentions on certain points and report back on the supplementary technical tasks undertaken by financial ministers. But the most important task has now been accomplished. The other member states will formally take note of this and take part in certain fields open to them.
In the meantime, finance ministers from the Eurogroup have continued with their work to develop the appropriate texts (see below) and they will continue with this task next Monday. Let's not forget that the agreements on euro management instruments obviously do not mean that progress “on the ground” has necessarily been achieved. The effects and results of applying these instruments remain to be seen, particularly for countries that have to prove in practice that they are able to respect the rules that they have signed up to, with the support of euro zone countries, of course, but essentially through the efforts they make themselves.
Can Greece avoid having to “restructure” its debt? The example involving Greece is obviously the most difficult case. The Greek prime minister, George Papandreou, explained at great length before the informal eurozone summit that he firmly rejected the hypothesis of his country having to restructure its debt. He also strongly rejected the downgrading given to his country by Moody's rating agency. All eurozone countries recognised the necessity of seriously controlling the way in which the rating agencies operate, by imposing rules and regulation on them. The European Commission will do what is necessary before the summer. In the meantime, it can be seen that both political and business players consider that Greece will not be able to avoid having to restructure its debt, even if its prime minister rejects this hypothesis. Eurozone countries made an effort last week in this connection by reducing interest rates on this debt and by extending the repayment deadline, but will this be sufficient? Moody's does not believe it is, because certain developments expected in Greece have not materialised, particularly in the tax arena.
It should not be forgotten that in the past, Greece cooked the books in order to be admitted into the euro zone. The current Socialist government is doing its best to have this original sin forgotten, for which previous governments were responsible, but this is not proving easy. Most observers consider that restructuring, with all the negotiations that this implies, will be inevitable.
Towards a compromise with Ireland? It is quite reasonable to hope that the Irish problem, which still hung over us last weekend, can now progress in a positive way. As we are aware, it involves corporation tax, which has historically been at a low level in Ireland. The new government in Dublin has not yet been able to give its view on this subject. Would it perhaps be prepared to abandon attracting investments by using this method? According to certain observers, recent developments prove that the effects of this measure could even be damaging to Ireland itself. The Commission has already announced that it will very soon be proposing a uniform basic rate of tax, which is the first aspect of European regulation in this field.
Finance ministers and the legal texts. The comments made above involve two particularly sensitive and controversial dossiers. The work by the eurozone finance ministers should also be followed with the same attention. Their work is essential if the system outlined by the heads of state and government in the eurozone is to be operational. In our publication yesterday, we provided a report on the meeting they held on Monday. Ministers, however, have not finished their work and they have decided to continue it until Monday 21 March. It should never be forgotten that the legislative texts that ministers are drafting are covered by Community procedure, with the full participation of the European Parliament. (F.R./transl.fl)