Danger of economic war. The stability of a continent that made its most important choice 60 years ago is now under threat. This is what Jacques Delors has just asserted. The current challenge is therefore not one of whether an A is added or removed from a member state's rating or gloomy financial markets, but rather the fundamental choices made half a century ago, which removed the danger of war breaking out in a united Europe for ever. He also added: “Today, war is not only waged with weapons, there is also the possibility of economic war.” This should not be forgotten, particularly in Germany, when the euro and its future is being discussed and negotiated.
Warning to Ms Merkel. Jacques Delors is pleased to observe that Ms Merkel - who, at the beginning of this crisis last summer, displayed an attitude which he described as “disastrous”, but who now recognises that if the euro were to collapse it would be disastrous for her country, is now advocating additional transfers of power from the member states to Europe. That said, Mr Delors does not in any way approve of Germany's current direction and, on the contrary, considers that it will ultimately “break the Community model”, which “has until now allowed Europe to move forward”. He explained that “the transformation of the Commission into a technocratic secretariat cannot work. It would mean a return to the intergovernmental method, with discussions between the cold monstrosities represented by the states and the disappearance of all aspirations towards European integration”. Germany also wants a treaty that would have “a particularly punitive aspect” towards those that do not respect the rules. Delors explains that “Germans must understand that other countries need both the time and resources to join a globalised world and that everyone has a share in this”. Nonetheless, he is opposed to the European Central Bank (ECB) becoming “the unconditional lender of last resort for the eurozone”. He considers that this formula could possibly “put out the fire” but with “terrible” consequences, particularly (but not exclusively) for the ECB balance sheet because if it suffered any depreciation in its share prices it would lose all credibility. “The ECB must continue to intervene only in exceptional circumstances and make it known that it will do so with the greatest determination.” If the crisis is not overcome, every EU country will turn in on itself with “devaluations across the board”.
Growth and austerity. The other essential factor in Jacques Delors' position is the fact that austerity is as important as economic growth. On his initiative, the Notre Europe Steering Committee approved a “Declaration” on 19 November last, which is inspired by the formula developed by Tommaso Padoa Schioppa, “Austerity in the states, Growth in Europe”. This does not mean that the EU is being urged to increase its expenditure overall. The thrust of additional growth has to result from the effective and improved use of the potential for job creation and the wealth stemming from completion of the single market. Moreover, we know how much waste and even abuses have been denounced or discovered in the use of Community funding. The Declaration by Notre Europe explicitly refers to infrastructures of common interest in fields of transport, energy and communication. It also indicates what initiatives will be necessary to relaunch these projects, including the issue of eurobonds that will be exclusively reserved for this category of projects and overseen by the European Investment Bank (EIB).
Other positions that should not be left out. In previous positions taken, Jacques Delors has: (a) denounced the lack of leadership in Europe. There are no longer any leaders who have anything other than a short-term view and opinion polls have become the law; (b) expressed his support for the Tobin Tax. He does not believe that this will provoke a haemorrhage of capital to tax havens, which already exist and which should nevertheless be tackled; (c) considered that responsibility for certain failing member states is collective and is shared by the whole of the EU, due to its lack of monitoring and courage; (d) supported eurobonds up to a 60% level of Gross National Product in each country, as allowed in the treaty but only for funding future projects;( e) been scathing about superficial innovations, such as a finance minister for the eurozone, which he described as being a harebrained scheme; (f) energetically argued that were a country to leave the eurozone it would mean overall impoverishment for the country in question.
Irreplaceable. One does not have to share all Jacques Delors' positions. I am, for example, less pessimistic than he about the risks to the Community method, given the increasing power of the European Parliament and the Commission's initiatives. Nonetheless, the former president of the Commission is as ever an irreplaceable protagonist in the European construction and his contribution is essential.
(FR/transl.fl)