Brussels, 05/04/2011 (Agence Europe) - During a debate on Tuesday 5 April, in Strasbourg, MEPS were only moderately convinced by Herman Van Rompuy's reassuring comments on the outcome of the European Council of 24 and 25 March.
Major results were achieved at the economic level, Van Rompuy, the permanent president of the European Council, said, citing the detailed agreement on the dimension, extent and functioning of the future Stability Mechanism, the six legislative proposals on budgetary and macro-economic measures (the final agreement being due in June), the start of the European semester, the proposal concerning credible stress tests for banks and the Euro Plus Pact, open to countries that are members of the eurozone. The president of the European Council welcomed the fact that six non-eurozone countries (Denmark, Poland, Latvia, Lithuania, Bulgaria and Romania) are hoping to join the Pact. Commitments from each country in relation to competitiveness, public finance and pensions will be examined annually at the highest level, he explained, giving his assurance that this in no way means that the welfare state will be brought into question. On the contrary, he asserted, they wish to “save this fundamental aspect of Europe”.
On the question of Libya, some had doubts (nothing is easy in war and peace, Van Rompuy had said) but it was possible to adopt a clear line of action. A bloodbath has been avoided, and the political objective defined on 11 March (Gaddafi's departure, political transition ensured by the Libyans themselves) remains unchanged. The nuclear accident in Japan has consequences for the world as a whole and, Van Rompuy said, the Union is calling for stricter safety standards and is encouraging neighbouring countries to also carry out stress tests.
The president of the European Commission, José Manuel Barroso, welcomed the “very positive structural decisions” taken by the European Council in the economic field, especially with regards the strengthening of the economic component of the Economic and Monetary Union. In relation to the EU 2020 strategy, the Commission hopes proposals will be ambitious, mainly when it comes to combating social exclusion and improving competitiveness. Barroso pleased MEPs by confirming that the Commission is ready to envisage the possibility of a tax on financial transactions. Evoking the situation in North Africa, Barroso also spoke of “constructive” contact being made with the Tunisian authorities, especially on the problem of refugees. Regarding the nuclear aspect, tests should be carried out with the greatest possible transparency, and results should be made public.
The last European Council has, according to the EPP leader, Joseph Daul, set EU countries on the right track. He firmly supports the Euro Plus Pact, while insisting on its implementation being done according to the Community method, under the authority of the Commission. And on the nuclear front, Daul said, there will be a “pre-Fukushima and a post-Fukushima”. He called for a period of reflection at European level.
“One has the impression one is watching the same film over and over again”, protested S&D President Martin Schulz. He pointed out that they agree on measures for the financial stabilisation of a country and then, the next day, a classification agency in London or New York demotes that country, arousing speculation against the euro. The ECB lends money to the banks at a 1% interest rate. The banks, in turn, lend to eurozone members at 10%. Schulz calls for a tax on financial transactions, and for public investment without which the EU 2020 strategy is doomed to failure, he said.
The ALDE Group spoke along the same lines. It is not with these stopgap measures that one will put an end to the crisis, Guy Verhofstadt said. The president of the Dutch central bank criticised the Council conclusions (budgetary measures that are not sufficiently austere, an insufficient governance package, a weak Euro Plus Pact, financial oversight carried out too much at national level) and Verhofstadt agrees with him. He called for: - abolition of unanimity when it comes to the working of the EFSF and the permanent ESM, if one wants to prevent them being “taken hostage” by the eurosceptics; - and a real “clean-up” of European banks, which must be recapitalised by setting up a real European Eurobond market.
What do citizens make of this? This was the question raised by Daniel Cohn-Bendit speaking on behalf of the Greens. “They hear competitiveness and they understand 'that will land on us'”; they are told the banks must be saved and they understand “all is well with the banks, but what about us?”. The lack of an answer to this feeling of “inequality, injustice and uncertainty” fuels the anti-European wave, Cohn-Bendit states, calling for productive investment and social measures such as the minimum wage. On the subject of North Africa, he urged the countries of the Union to “take stock of the gaffes made in neighbourhood policy”. And on the nuclear issue, he was uncompromising, saying that, in this field, there is no zero risk, the only zero risk being exit from the nuclear option.
Jan Zahradil (ECR, Czech Republic) underlined that most members from the ECR Group come from countries outside the eurozone. This does not mean they are against the euro, he said, adding that what is a nuisance is the “hidden agenda” that one is trying to promote by taking advantage of the crisis to move forward towards a tax union and greater integration, to which “we say no”.
Lothar Bisky (GUE/NGL, Germany) is just as critical but for other reasons. He recommends economic governance founded on a democratic base, preventing salary dumping and regulating financial markets. On the subject of North Africa and Libya, the EU, he said, is caught up in a macabre situation, as Gaddafi represses any democratic movement using weapons that the EU has supplied. Bisky went on to speak of the nuclear aspect saying: It is not surprising that citizens are perplex when it comes to the nuclear aspect, given there is no coherent European policy in this field.
Pervenche Berès (S&D, France) sees an “absolute contradiction” between EU 2020 strategy and economic governance measures. For her, “we are moving from a system of coordination to a system of supervision”; the banks are being rescued (e.g. the case of Ireland), but the people are being forgotten. Philippe Lambert (Greens/EFA, Belgium) forcefully said that Europe will never manage to win the battle of low wages against China and it is well on track towards losing the productivity battle in the field of energy. One must therefore correct one's aim and invest advisably. Also, he said, one should not forget when recommending spending cuts that 40% of public spending goes to the social sector. Berès asked whether anyone had thought of the consequences of such cuts.
“You are aiming at the wrong target by going against the Commission”, Barroso protested, regretting that proposals made by the Commission - like that on bringing the permanent stability mechanism fully within the Community sphere of competence - had been rejected by most member states. “I felt you were somewhat pessimistic”, Barroso concluded. The president of the European Council was also argumentative in his response, asking: “Am I the only idealist around here?” On the subject of governance, he did admit that the result was perhaps not what it should have been and gave his assurance that the Council would be working with the Parliament to improve the situation. (L.G./transl.jl)