Brussels, 03/04/2013 (Agence Europe) - The reinforcement of the Economic and Monetary Union (EMU) will save the single market, said the president of the European Commission, José Manuel Barroso, in Prague on Wednesday 3 April following a meeting with the Czech Prime Minister, Petr Necas. Our challenge consists of adequately calibrating the required development of the EMU for the purposes of financial stability, whilst guaranteeing the “integrity of the single market”, he stressed, thereby seeking to respond to the concerns voiced by the Czech authorities.
As part of the development of the EMU, the Commission presented its vision at the end of March of the ex ante coordination of economic policies and the creation of contracts whereby a member state undertakes to carry out certain economic reforms in exchange for European financial aid (see EUROPE 10811). This subject will be on the agenda of the June European Council.
Banking union. Barroso argued that if banking union already existed, it would have been easier to manage the difficulties which arose from the creation of the rescue plan for Cyprus, which provides for the restructuring of the two main banks of the country, amongst other things (see other article).
Convinced that the worst of the crisis is now over, Barroso praised the efforts made by the Czech Republic towards budgetary consolidation. Subsequent structural measures will be required in order to guarantee the long-term stability of the Czech public finances, he added, referring to the specific recommendations to the Czech Republic adopted by the European Council last June and which will be updated in June of this year as part of the budgetary process of the “European Semester”.
In its winter economic forecasts, the Commission forecast zero growth for Prague in 2013, following a recession of 1.1% of GDP in 2012. The Czech public deficit is expected to fall from 5.1% in 2012 to 3.1% of GDP this year.
European flag flying. For the first time, the European flag was flying on Wednesday over Prague Castle, thus showing a deep gulf in European policy between the new presidency of Milos Zeman and that of his predecessor, Vaclav Klaus. It is worth noting that the President of the European Council, Herman Van Rompuy, will be in Prague for an official visit on Thursday 25 April. (MB/transl.fl)