The community is more than usually a hive of activity at the moment, but most of the information media (and therefore the general public) don't seem to have noticed. Except for one aspect for which, on the contrary, a little more reflection and caution would be greatly welcome: I am referring to the perpetual agitation that is the financial markets, with news just happening to break at the very time which is most beneficial to speculators, with dubious sources in some cases or which are hotly denied the next day. Wouldn't it be nice if the people could also be kept abreast of other events and developments which have a direct impact on the lives of millions of Europeans? Here are a few recent examples.
1. New common agriculture policy. After years of preparatory work and preliminary talks between the member states, the European Commission has made its choices and the agriculture commissioner, Dacian Ciolos, has prepared his draft implementing regulations. The Commission will adopt these formally on 12 October, but our bulletin No 10449 gave our readers a preview of their content. Apart from its importance to producers, the new CAP will directly influence the territorial balance of Europe, the safeguarding of nature, Europe's contribution to the fight against world hunger and many other elements. The Commission is proposing to modify a few fundamental aspects of the current CAP and certain items will be controversial, such as getting rid of sugar quotas and the total liberalisation of the vine planting rights system, as well as the budgetary provisions. But this draft, which will have a considerable bearing on the future of humanity, exists. With the exception of our bulletin, the media have largely ignored it.
2. Financial perspectives of the EU for the period 2014-2020. The foreign affairs ministers have started their debate on the Commission's proposal, which has thrown up several major misgivings. Negotiations at the level of the heads of state or government will not start until next year, but already eight member states have put their names to a joint declaration opposing any increase of Community expenditure. National budgets have had to be cut left, right and centre, they argue, so the EU should not be increasing its expenditure. But which are the countries which have signed up to this position?
It is significant that they are all member states which are “net contributors” to the Community budget: Austria, Germany, Finland, France, Italy, the Netherlands, Sweden and the United Kingdom. Their position is simple: the EU should be spending smarter, not spending more. This view is not, unsurprisingly, shared by countries in the opposite corner, which are looking for increased support from the EU. The Polish Presidency of the Council does not see itself as engaged in this debate, because the work it is chairing relates to the structure of the draft (duration, structure, flexibility); it will be up to the next Presidency to flesh it out with figures. Poland is no doubt very pleased that by the time that happens, it will no longer be bound by the impartiality required of the Presidency…
It will be an uphill struggle, but one which is very important for the future of Europe.
3. Against violent extremism. The EU's official participation in marking the 10th anniversary of the attacks of 11 September in New York has not exactly made the front pages, but we can see why: a joint press release by Mr Van Rompuy and Mr Barroso was never going to move the masses to tears. But at the same time, European Commissioner Cecilia Malmström launched an initiative which may, under the current circumstances, prove very useful - the creation of a high-level network to help fight “violent extremism”. The starting point is the observation that violence is by no means the exclusive preserve of the Islamic extremists behind the tragic events in New York: the Norwegian attacks and the commitment of several Muslim movements to peace are evidence of this. The network just launched will focus both on best practice and various aspects of violent radicalisation, including use of the internet or social networking sites to spread extremist propaganda. Our bulletin No 10449 will give you a bit more background to an initiative which has not created many waves, but which is nonetheless useful and could prove effective.
4. Financial transactions tax. Germany and France have now formally launched this project which, if it comes to fruition, will effectively help to cover the budgetary deficits of the member states. The move is an important one, because Angela Merkel hung back for a long time. Certain countries, most notably the United Kingdom, are still hanging back, or actually opposing the plan. The answer is simple: the tax would be applied by the countries of the eurozone. This received a great deal of attention previously, with emphasis on its downsides; now the project is actually here, it's radio silence (or just about). The risk that operators may move out of the eurozone to settle in areas where the tax does not apply has been stressed. We will see. For a start, the project will be reactivated within a G-7 framework, and we will see whether the financial markets operators manage, once again, to make their interests prevail (even if the cost to them would be minimal), or whether general interest will come out on top.
5. Controlling the folly of the financial markets. The behaviour of the financial markets, their uncontrolled and uncontrollable fluctuations, have gone beyond the limits of what is acceptable. Two days ago, they “were spinning round like whirling dervishes” (in the words of a commentator): positive developments at the start of the session, very negative ones shortly afterwards, positive again by lunchtime, negative by 2.00pm, back up again an hour later and by the end of the day. All of this was in reaction to rumours doing the rounds at any given moment about financial or political developments. Information from the Wall Street Journal about problems encountered by BNP Paribas in obtaining finance in dollars, later denied, had the result that that bank's shares went, in just a few hours, from a drop of 13% to a rise of 4%. BNP Paribas has asked the market controllers to investigate.
This disruption on Tuesday reminded me of a few even stranger facts. How can we forget the 'soap opera' in Le Monde last month? The French daily had the (very poor, in my view) idea of publishing, on the page opposite the financial information, a story in serialised form, about the end of the euro and the Société Générale crisis. The way the story was presented visually may have created a certain amount of confusion between real and fictional financial information.
The fact is that in mid-August, a British newspaper reported the story line from the serial, in other words that Société Générale was at risk of going under and that 14.7% had been wiped off the value of its shares in a single day! The newspaper immediately backpedalled, but the damage had already been done by then, and the French competent authorities opened an investigation. Do these events not justify a more effective control of the financial markets, particularly when you see the extent to which, during these times of budgetary austerity in almost all European countries, the financial operators have started making profits once again?
6. Boosting growth. Efforts to consolidate the budgets of the member states, whose deficits are incompatible with the disciplines of the euro, are always presented as exercises in austerity and reducing public expenditure. This aspect, obviously, is a priority and very healthy, because waste and abuse in the budgetary management of a number of member states have been manifest, and it is vital that this is brought under control. But this aspect is not the only one, even if it does dominate reactions and lamentations: the Community institutions are increasingly flagging up the second plank of planned reforms, in other words boosting growth. Getting rid of unjustifiable expenditure and abuse should go hand in hand with structural reform to breathe new life into economic growth, in order to put an end to the slowdown of activity. The Community institutions may be increasingly highlighting this second aspect, but the commentators very often overlook it.
It should not, however, be used to undermine the former aspect, which is reducing public expenditure and re-establishing a budgetary balance within the required time frame. A difficult balancing act, but a vital one.
7. Energy policy. The European Parliament and Commission are in the process of re-launching a number of aspects of European energy policy; these have been summarised in our bulletin. For the time being, these initiatives have been sporadic and faced the misgivings of certain member states and major players in the sector, each of which are following their own agenda, leaving the Community institutions out in the cold. We won't see the European Energy Community proposed by Jacques Delors any time soon! He is always so far ahead of the curve that it often takes many, many years before others see that he was right all along. How long will it take for the imbalance in the Economic and Monetary Union, about which Mr Delors expressed reservations from the very beginning, to be acknowledged. The same goes for energy - we will have to wait. But it is worth stressing that something is finally moving.
This column will return with a more detailed report (F.R./transl.fl)