Initiatives are taking off. I do not share the widespread scepticism and sarcasm about the launch of a European economic stimulus plan. From the start, I have tried in this column to explain the plan's twofold nature: (a) sending a message to public opinion that the EU sees growth and jobs as equally important as budgetary discipline; and (b) the launch of immediate prospects for economic stimulus. The current developments confirm my idea that the Statement by European heads of state and government is far from fluff and nonsense because the measures announced are already taking off and anyway, Barroso and the heads of state are not the only people to launch economic stimulus measures. Ahead of the summit, the Commission discussed various aspects of this with EP committees, taking on board their feedback.
Backing from the EP president. The speech by EP President Martin Schulz at the start of the 30 January summit set out suggestions and demanded measures, many of which were in the Statement. Setting out the EP's demands, he cited an initiative for growth that it would make sense to fund from the billions of euros not yet used in the EU budget (and which would otherwise be lost to the EU and handed back to the member states at the end of the tax year). Most of the unspent billions should, he said, be invested in projects to create jobs for young people and Schulz thanked Barroso in advance for measures he would be unveiling in this connection just one hour later.
The list of EP demands was, of course, much longer than that, including the Tobin Tax on financial transactions; setting up eurobonds; and a European credit rating agency to smash the US monopoly and remove conflicts of interest. These are valid demands, which is good news, but even better news is the fact that the Statement on economic stimulus was signed by the leaders. I still believe that the Statement is one of the best documents approved by the European summit over its long history; it is certainly one of the most practical and tangible.
Role of the internal market. The Statement stresses the role of the internal market in encouraging economic activity, referring in several places directly and hinting in others that more needs to be done in this domain and that remedies exist. This was referred to by both EU Internal Market Commissioner Michel Barnier and his erstwhile predecessor, Italy's Prime Minister Mario Monti. In an EP debate on growth, head of the EPP Group at the EP, Joseph Daul, calls for the completion of the single market because the legislation exists but has not yet been applied and it must be made clear to every European which countries are not pulling their weight “for a unified single market”. During the same debate at the EP, the head of the Liberal Group at the EP, Guy Verhofstadt, called for action to get the European patent up and running by having Brussels as the temporary location of the appeals court (until the squabbling countries make up their minds). If I were better informed (or smarter), I would be able to comment on this latter point, and I hope to be in a position to do so shortly.
The respect paid by all member states to the single market is stronger than attempts to play to the gallery to win extra funding that is simply not there at the moment.
Further comments. (1) EU budget funding for measures to encourage jobs for young people (in other words a significant proportion of the €82 billion unspent funding) has been agreed upon and will be divided up as follows among the member states: Poland €17.5 billion; Spain €10.7bn; Italy €8bn, and so forth, but the share allocated to each nation is problematic because of the budget travails of various member states. Guy Verhofstadt called for the EU co-funding rules to change (the amount each country must provide for each euro from Europe) to ensure the best use of funding and avoid waste and corruption. EU funding is not used efficiently in all the member states.
2) The fact that Sweden did not sign the Statement was not because it does not share the objectives, but rather because it wants to continue with its own measures for young people, which it says are better suited to Sweden's needs and mindset. It is not Sweden, but other member states, that are hostile to the European project right now and these hostile countries need to be reminded that the door is open and they are free to leave the EU any time.
(FR/transl.fl)