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Europe Daily Bulletin No. 10844
A LOOK BEHIND THE NEWS / A look behind the news, by ferdinando riccardi

Fresh significant signs confirm that Europe is on the move

Dialogue relaunched. The negotiation between the Council, the European Parliament and the Commission on the 2014-2020 financial framework formally resumes on Monday. Is it necessary to reiterate that this is all about the most important and spectacular file in this complex phase of the life of Europe? The overall budget that the EU will have available for the next seven years, and its allocation between the different common actions and policies corresponds in practice to defining what the European Union will do and will become. A struggling Europe that is radically divided would not be able to relaunch the definitive discussion on this subject.

The opening of the formal negotiation involves compromises being made on the preconditions set by the European Parliament. In fact, a few aspects still have to be reviewed (see EUROPE 10842) - but these won't stop the watershed.

Germany hails attraction of young people. Nothing is in the bag but everything is on the move - point one. The German labour minister, Ursula von der Leyen, has stated how pleased she is about the “new quality” of immigrant workers coming from other member states - workers who are helping her country confront the lack of labour. The advantage is twofold - for Germany, which is faced with the problem of not enough labour and an ageing population, and for other member states where young people can't find work. The new arrivals are especially coming from Italy, Spain, Portugal and Greece. They are more and more numerous every year and their training - with qualifications - is often more than satisfactory. “This will help our country be younger, more creative and more international”¸ said Ms von der Leyen, describing what is happening as a stroke of luck. The means that immigrants from outside the EU (whom Germany nevertheless continues to welcome) do not for the most part have the same knowledge.

Ambitions of the new Italian government. Nothing is in the bag but everything is on the move - point two. The attempt of a French Left splinter group to sever its links with Mrs Merkel's Germany has been radically relaxed (see this column in EUROPE 10839).

At the same time, the other member state of almost similar size - Italy - is trying to recover or safeguard its European role. A minister for European affairs features in the new government - Enzo Moavero Milanesi, the former high-level official at the European Commission and judge in the General Court of the EU. He spoke of his vision and intentions in the Corriere della Sera on 9 May - Italy accepts the budgetary discipline not because it is forced to but out of conviction. The discipline must, however, go hand in hand with economic recovery. And he pointed out what Italy expects. The European summit on 22 May is due to give its opinion on the reduction of the cost of energy and on the fight against tax fraud. The June summit will discuss the integration of the eurozone, and Italy will fight for: - clear progress in banking union, with a single monitoring system; - contracts committing member states to carry out well defined reforms; - flexibility enabling capital investment in member states where the budgetary deficit is below 3% of gross national product. The public need to see with their own eyes that these member states can take action in favour of growth and job creation.

Mr Moavero Milanesi stressed the need to strengthen simultaneously the democratic European institutions, so as to overcome the idea of a Europe managed by technocracy.

Italy - as we know only too well - wants very quickly to leave the excessive deficit procedure (opened by the Commission at the end of 2009). Indeed Italy wants to leave this procedure by the end of this month if possible and, for this reason, Rome will present its revised stability programme in Brussels in the coming days.

France could recover… The European Commission (see EUROPE 10839) has asked the French state to recover some disputed aid - €1.2 billion paid to Electricité de France; nearly €8 billion guaranteed to the PSA automobile group; €220 million in aid - and other sums to be made known - paid to the SNCM maritime company (links with Corsica). These are modest examples but they are significant because respect of Community rules would relieve the French budgetary deficit, and because the undue breadth of aid figures are amongst the causes of the ruinous deficits that hinder respect of the Stability Pact (according to which the overall deficit of a country must not exceed 3% of GNP, and its debt must not exceed 60%). The time schedules are flexible but the principle remains the same.

Backwards move? In spite of all this, Europe is moving backwards on the global level. Why? This column will return to this tomorrow.

(FR/transl.fl)

 

Contents

A LOOK BEHIND THE NEWS
ECONOMY - FINANCE - BUSINESS
INSTITUTIONAL
SECTORAL POLICIES
EXTERNAL ACTION
COURT OF JUSTICE OF THE EU
WEEKLY SUPPLEMENT