Brussels, 18/06/2012 (Agence Europe) - Graham Watson from the European Parliament's ALDE Group called on Monday for EU27 unity to get out of the current crisis, expressing concern about potential developments after the 28-29 June European summit. He pointed out that on one side there is Herman Van Rompuy, José Manuel Barroso, Mario Draghi and Jean-Claude Juncker, while on the other side, Mario Monti, Angela Merkel, François Hollande and Mariano Rajoy have been meeting up at mini-summits (see EUROPE 10635). As far as Watson is concerned, Europe has to show that it can change direction if it wants to reassure credit rating agencies and the markets, and serious growth plans are also needed.
Watson said he was relieved at the outcome of the Greek general elections on Sunday evening (see separate article), which demonstrated a sincere desire to remain in the euro, but said it was important to continue with the necessary reforms.
He said the EU must take a three-stage approach. Firstly, it should set up a debt repayment fund. On Wednesday 13 June, the European Parliament called for a fund of this nature, which could pave the way for the creation of eurobonds (an idea firmly opposed by Germany).
The second stage would be the creation of project bonds with the financial aid of the European Investment Bank.
The third and final stage would be issuing eurobonds proper, but Watson says this will not happen any time soon, although the idea now seems to have sufficient backing.
One of the big dangers jeopardising economic recovery is the high level of youth unemployment. Job creation is urgently needed and could be done in the existing economy, said Watson, before setting up a budget union. The latest ILO figures show that one in five young Europeans is currently unemployed. (EL/transl.fl)