Brussels, 15/03/2011 (Agence Europe) - The inter-parliamentary meeting with national parliaments met in Brussels on Monday 14 March under the chairmanship of Wolf Klinz (ALDE, Germany), the chairman of the special committee on the financial, economic and social crisis. The theme of the meeting was “Investing in the real economy: a tool kit for growth, innovation and cohesion”. These subjects are the very essence of EU 2020 strategy, which calls for the creation of more jobs. However, there are no jobs without growth, no growth without competitiveness, no competitiveness without innovation. During this period of crisis, how can one fit all this together to make the labour market more competitive and more effective? What can Europe do and what is its added value? Speakers included Thomas Mirow, President of the European Bank for Reconstruction and Development (EBRD), Philippe Maystadt, President of the European Investment Bank (EIB), and Pervenche Berès (S&D, France), who chairs the EP committee on employment and social affairs.
During dinner after the debate, Jerzy Buzek, EP President, said the lesson to be drawn from the financial crisis is that more Europe is needed, not less Europe. He went on to say that there is no solidarity without responsibility and that there is no monetary union without a successful economy. Jacques Delors, who is an “absolute” supporter of the Community method, asked what could be done at the EU27 and EMU14 levels. He said that competition policy, the refusal of social dumping, solidarity showing the interdependence of EU countries, cooperation - the missing link in European construction - the budget, and also Eurobonds were all elements of the large market on which measures should be taken. As regards EMU, he sang the praises of differentiation. Looking ahead to new EU enlargement, he said there should not only be enlargement but also deepening.
At the EU27 level, the former Commission president and founder of the “Notre Europe” think-tank spoke of:
(1) Competition. He said: “There is no market without rules and the first rule is competition policy. Rules form the framework for the financial world. How far should one go at global level? That will be the task of the G20. The financial ideology is still here. It is no longer possible today to hear as we used to hear for ten years that what is important is the creation of capital. For a company director or banker, the creation of capital is an increase in stock market prices. One cannot live like that in the short term”.
(2) Social aspects. A) The refusal of social dumping is also an element of the large market in respect of diversity among social models. The president called on the Court of Justice to differentiate between countries where social norms are fixed by law, and the others where it is by collective agreements (and not to call on the latter, as was done for Sweden, to bring in a law). “The day when the Pact for the Euro sees light of day, I trust that we shall have the finesse and the subtlety not to use words that offend and do not truly correspond to the social models”, Delors said. B) Solidarity. This is not synonymous with irresponsibility. This is a movement that shows that our countries are interdependent, Delors said. And it is also a move towards convergence. “Social Europe also means solidarity - it also means economic and social cohesion. And at the time of discussion on the budget, we should speak not only of budgetary constraint but also of the effectiveness of economic and social cohesion”, he asserted, going on to explain: Solidarity should not be limited to “distributing cheques”. Social solidarity, economic and social cohesion infers that one has bottom-up virtues, on the spot experience for making up for time lost, for developing the rural regions, and a “worker and mate system” with the Commission. The best of these successful experiences should be shared with the others.
(3) Cooperation. “This is the missing link in European construction. We call on the countries who care for their common interest to cooperate with each other. And the main missing link was Economic and Monetary Union”, said Delors. Cooperation implies a “state of mind and financial incentives from the EU to enhance such cooperation”, he said. Referring to the period when the euro was not doing well and to the suggestions made by Anglo-Saxon thinkers (who said what was needed was an ECB with a European government and national central banks), Jacques Delors answered: “No-one wants a European government! Between the two systems, there is cooperation. If you do not cooperate, you will not save the euro and you will never guarantee the future of Europe”.
(4) European Budget. “We do not simply need a European budget for it to grow bigger, or simply to compensate regression, recession or necessary austerity policies, but also for inventing new resources”.
(5) Eurobonds. President Delors recalled that he had never spoken of Eurobonds for the financing or reimbursing of national debts. The Eurobond only stands a chance if it is intended for future spending. He congratulated Philippe Maystadt and the EIB for having shown proof of “financial engineering”. It is true, he said, that one can combine a low budgetary commitment by Europe, a lending commitment and a certain responsibility on the part of the private sector.
At the level of the EMU17. In the knowledge that some are “shocked” when they hear talk of these two Europes, Jacques Delors explained the reasons for his choice, saying: “I have never had it in mind that the EMU was the vanguard of the larger Union. But I know that, if there had not been differentiation in Europe over the past 50 years, we should not have the Europe we have today”. He went on to point out that differentiation has allowed Schengen and the euro to come into being. Differentiation is a way for some countries to go further forward albeit in line with the general rules that are imposed on all - the first rules of the EU27. One must allow differentiation to play its part since Europe will be enlarging again. Otherwise, we shall choose enlargement towards a “weak entity” instead of choosing enlargement as well as deepening. What he is talking about is enhanced cooperation, saying: “If one refuses the idea of differentiation, we shall be down to the smallest common denominator. Inevitably, since we must take in other countries, we shall be a weak entity. This means that, in the beginning, supporters of this system will speak of a large market but, as there will be no political authority, as there will be less and less political will, everyone will begin to do his own little bit of protectionism. It will be decadence. The only choice is therefore that the EMU should be an example, a reference and allow Europe to be saved”. Jacques Delors called for a minimum of tax harmonisation, to have a guarantee for the markets. An economic fund for the EMU is also needed he said, concluding: “If the euro fails, European dreams will be destroyed. It is in the world as it is, in technological mutation, that Europe has the choice between two solutions - survival or decline”. (G.B./transl.jl)