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Europe Daily Bulletin No. 10713
A LOOK BEHIND THE NEWS / A look behind the news, by ferdinando riccardi

Two-speed Europe has become essential for consolidating the eurozone and boosting European integration

Towards a double EU? The conference organised at the beginning of the week by Notre Europe -Jacques Delors Institute discussed in advance - to a large extent - the subjects which are now at the centre of deliberations at the European Council. This remark is valid with regard to the functioning and innovations of the eurozone, as well as to the boosting of the single market without borders. Some of the significant approaches discussed during last Tuesday's conference can be found in the conclusions of the summit which finishes this Friday - particularly the principle of a two-speed Europe entailing, in practice, the birth of a double European Union.

It's an approach that the European Parliament distrusts - and that's quite normal, because the European Parliament means to keep intact its uniform competences on all European affairs. Yet the reality is that a large part of the progress that the EU needs is not shared by the totality of the member states. Those who believe that the Community spirit is today uniform, and that Romania, Hungary and a few other member states have the same ambitions for integration as the countries of the euro - well, good for them! This means that they are ready to wait for unanimity in order to progress. Jacques Delors' reflection takes a different approach. He of course considers that solidarity must live on between all the member states - it represents a common untouchable base, and national developments towards more European integration will be welcome. Yet, while waiting, the countries that want to progress and that respect the rules must have the possibility to do so. This involves (1) recourse to enhanced cooperation; (2) consolidation of the two-speed principle; and (3) institutional mechanisms making it all possible.

France in favour of eurozone autonomy. One of the heads of state and government currently meeting in Brussels, President François Hollande, has just given his position on the aspects mentioned above, expressing himself fairly solemnly to six journalists of different nationalities (German, British, French, Italian, Spanish and Polish). In particular, he said: “My approach is a Europe which moves forward at several speeds, with different circles. We can call them avant-garde, precursor States, hard core - the name doesn't matter, it's the idea that counts.” In Hollande's view, the eurozone “calls for a new governance and must take a political dimension. I am in favour of the Eurogroup - which brings together the finance ministers - being strengthened and its president having a clear and sufficiently long term of office. I am also in favour of a monthly meeting of heads of state and government of this zone. (…) The Council of the eurozone would enable better coordination of economic policy.”

Hollande does not envisage a closed eurozone: “Those who want to join it will take part in our discussions. Some countries don't want to join it - that's their choice. But why would they come and tell us how the eurozone must be managed?”

As for the EU as a whole, Hollande said: “The Europe of 27 - soon 28 and tomorrow still more - is a political space of solidarity, a large market, a determined effort for economic, social and cultural convergence. (…) But this large Union must not prevent enhanced cooperation which releases means over and above the European budget. This will be the case with the financial transaction tax.” The French president spoke on other subjects: “The political Union? That's afterwards. That's the step that will follow on from budgetary union, banking union and social union.” And he went on: “The time has come to give a perspective beyond austerity.”

A radical German position. The German finance minister, Wolfgang Schauble, has established a close link between the financial commitments of member states and strengthened monitoring. He has spoken of a “European super-minister” who would have powers over member state budgets, similar to those of the European commissioner for competition. He considers that within the European Parliament, only MEPs from the member states concerned could vote in financial affairs- in other words MEPs from eurozone countries in affairs of the euro. These are not positions affirmed by Mrs Merkel, but they have been expressed by a member of the government.

Mr Delors insists. For his part, Jacques Delors has reaffirmed: “I have supported differentiation for a long time. If some countries want to go further while respecting the rules of the whole, they should be allowed to do so” (our translation throughout). (FR/transl.fl)

 

Contents

A LOOK BEHIND THE NEWS
EUROPEAN COUNCIL
ECONOMY - FINANCE - BUSINESS
SECTORAL POLICIES
EXTERNAL ACTION
COURT OF JUSTICE OF THE EU
COUNCIL OF EUROPE