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Europe Daily Bulletin No. 10613
A LOOK BEHIND THE NEWS / A look behind the news, by ferdinando riccardi

Why one should return to the “Community method” - Keeping Greece in the eurozone does have its protagonists - In favour of budgetary austerity

Community method must prevail over intergovernmental method. The European Socialist world is on the boil. As one might expect, it is hoping that the victory by François Hollande in France will be symptomatic of similar developments in other member states. Of course, changes occur swiftly in the EU with observers calculating that, since April 2010, the political majority has changed hue in 15 member states. In most cases, there has been a move towards the centre-right (Hungary, United Kingdom, Spain and Portugal), but there has also been a move the other way (Denmark, Slovakia, Romania and now France). We have already noted in this column that such changes have an effect on the composition of the European Council and ministerial Councils, and must not forget that the European Parliament will soon be renewed.

I believe, however, that changes in member state majorities and governments do not alone determine the direction taken by the EU. We must not forget that the European Commission remains impartial, over and above the parties. It brings together prominent figures of every political colour and its task is to define Community interest. Also, a number of member states have coalition governments and the search for compromise is a permanent feature of the EU Council.

One should bear in mind the specific features of the German Socialist Party and its attitude in favour of joint corporate management between workers and management. In this column in EUROPE 10593 in April this year, we endeavoured to take this specific situation into account. And what is more, observers (journalists and others) and experts speak of the possibility of a forthcoming governmental alliance between Ms Merkel and the Socialists.

Given the various elements mentioned, I am prompted to say that the institutional working of the EU should not be compared with that of the member states. At Community level, there will be no radical dominance by any one political party. Any development towards such a situation would be far from desirable as, in a community made up of 27 member states or possibly more, there will be national elections every year and even several times a year. There is, however, a way to prevent the change in a country's majority from having excessive influence on Community activity, and that way is obvious - the EU must remain true to the Community method and (within reason) be distrustful of the intergovernmental method.

It goes without saying that changes occur naturally in any democracy, and that they must be taken into account. In particular, the composition of the European Council is logically determined by the results of national elections but, although the Community method prevails as is only right, changes remain the norm.

Over and above doctrinal positions, therefore, it is the smooth functioning of the European Union that demands compliance with the Community method. And that is an argument that calls for greater affirmation.

Doubtful arguments for Greece to stay in eurozone. The leader of the Socialist Group at the European Parliament, Hannes Swoboda, has adopted a stance against Greece leaving the eurozone. He is forceful and firm, describing viewpoints pressing for Greece to leave the eurozone as “irresponsible … pointless and unhelpful”. I wish readers to be aware of this as, only yesterday in this column, I maintained that Greece's departure from the eurozone would be in the interest not only of the EU but also of Greece itself. According to Mr Swoboda, one should not take the result of the latest elections at their face value, saying the vote was “an expression of anger and despair”. He maintains that Greece's withdrawal from the eurozone would have serious consequences for other countries of the EU, while everything points to it being Greece's failings that weigh most heavily on the eurozone as a whole.

Daniel Cohn-Bendit, Co-leader of the Greens/EFA Group at the EP, is still more explicit, saying: “It is idiotic to threaten the Greeks. We must find a way out with them.” I feel he is neglecting the essential elements: - the vote by the Greek people rejecting the existing plan; - the lack of progress on the part of Athens when it comes to applying that plan; - and the advantages that departure from the eurozone (even temporary), coupled to strengthened economic support of the EU, would bring to Greece itself.

At this point, I would add the fundamental element that is always ignored - the repercussions that the Greek situation will have on other eurozone countries, such as Portugal or Ireland, Spain or Italy and even France! According to the French press, François Hollande's strategy would be compromised especially in relations with Germany, just a few days ahead of the visit to Berlin. And all for nothing as, as things stand, Greece is unable to abide by eurozone regulations.

I therefore stick to my opinion that the vote by the Greek people must be taken in earnest and, when it comes to leaving the eurozone (but not the EU!) I would reiterate, like Mr Prudhomme, that “It is my opinion, and I share it”.

European Parliament wants no waste. The EP has cancelled its plan to send a delegation to the UN summit on sustainable development to be held next month in Rio de Janeiro, due to the excessive travel costs entailed (see our bulletin yesterday). I come back to this as this column recently expressed bafflement about the trips made by MEPs to South America, at a time when the project of an EU-Mercosur association is in stalemate and parliamentary meetings keep on churning out the rhetoric but actually do little. All the European institutions must prove that they are aware of the need for constraint with regard to expenditure during this period of austerity for all. The episode cited and other positive approaches show that they are indeed aware of this. One might also cite the European Parliament's majority decision, reported on in our bulletin yesterday, to defer the discharge for the 2010 budgets of three Community agencies working in areas as sensitive and important as the environment, food safety and medicines - due to doubt and perplexity about their management (mainly in relation to cost) and their composition.

(FR/transl.jl)

 

Contents

A LOOK BEHIND THE NEWS
ECONOMY - FINANCE
SECTORAL POLICIES
EDUCATION - CULTURE
EXTERNAL ACTION
COURT OF JUSTICE OF THE EU
EVENTS CALENDAR