Brussels, 12/06/2013 (Agence Europe) - The members of the European Parliament have criticised the member states for delaying the decisions on and implementation of measures they have long been calling for to tackle the crisis decisively.
“The number of meetings of the European Council seeking a solution to the crisis is just unbelievable. There is no end of summits. Decisions are made, but implemented very slowly, if at all”, lamented the head of the EPP Group, the French MEP Joseph Daul, on Wednesday 12 June at the plenary debate on the summit of 27 and 28 June. His Liberal group counterpart, Belgium's Guy Verhofstadt, criticised the French President, François Hollande, for saying that the crisis was over. “We are right in the middle of it”, he stressed. He argues that the only way of effectively fighting the crisis is to recapitalise the banking sector so that it can agree to lend to the economy at less prohibitive rates. He laid emphasis on “banking union”, calling on the European Council at least to agree on the need to conclude this area of work quickly. “On 27 June, things have to be clear and there has to be an end to the battles between member states”, the former Belgian prime minister stressed. Looking at the images on the forced closure of the Greek public media, “I say the crisis is not over”, said Rebecca Harms (Greens/EFA, Germany), who feels that the greatest crisis comes from the inability of the member states to move towards greater political integration.
The summit will be given over to the economic situation in the EU, the development of economic and monetary union (EMU), the fight against youth unemployment and the funding of the economy.
The European Council will stress the implementation of the economic and social policy recommendations presented by the European Commission in late May (see EUROPE 10855). The Irish minister for European affairs, Lucinda Creighton, stressed the importance of budgetary consolidation, the pace of which must come into line with the situation of each country, and hence an extension of the deadlines (one year for the Netherlands and Portugal, two years for Spain, France, Poland and Slovenia) to bring their public deficits back below the 3% mark. This extra time must be used to complete structural reforms, stressed the president of the European Commission, José Manuel Durão Barroso. The member states will stress the need to speed up the implementation of the growth pact, with its envelope of €120 billion. The role of the EIB, the capital of which has been increased by €10 billion, will be decisive in this area.
EMU. Creighton acknowledged that progress was needed to develop the EMU, “particularly in terms of banking union”. A preparatory document to the draft conclusions of the summit describes banking union as a key element to “stimulate confidence, reduce financial fragmentation and restore normal conditions for lending to the economy”. It goes on to state that a single banking supervision mechanism requires a single bank restructuring mechanism with substantial powers allowing it to make swift and coherent decisions and supported by an effective financial structure, also of a budgetary nature. The Commission's proposal to create a European restructuring agency is expected to be presented before the summit (see EUROPE 10861).
In December, the European Council had already put the drafting of the roadmap on the development of the EMU. There is a risk that extra time will be called for at the forthcoming summit. In a resolution adopted on Wednesday, the EP criticises the Council's procrastination and the “negative” influence of the national electoral processes, which have the effect that “all of the decisions on the future architecture of the EMU will be delayed even further” (see EUROPE 10864). The summit may go no further than to note the Commission's intention to submit a proposal on the ex ante coordination of the economic policies and to present a communication on ways of completing the European framework for the coordination of economic policies, two issues which will be on the agenda of the December summit. The president of the Commission has also announced proposals on the “social dimension” of the EMU.
Youth employment. In an echo of the Franco-German request (see EUROPE 10857), Barroso spoke of the Commission's efforts to allow an agreement at the summit to mobilise the €6 billion of the financial framework 2014-2020 earmarked for the Youth Initiative at the beginning of the cycle (the first two or three years). The summit is expected to ask the beneficiary countries to adopt a plan to implement this initiative by the end of 2014, the others having a deadline set for summer 2014. The Commission and the member states will be called upon to explore the possibilities of funding measures against youth unemployment out of the European Social Fund. Emphasis will also be laid on measures to facilitate the mobility of young workers.
On Wednesday, the EPP, S&D, ALDE and Greens/EFA Groups adopted a joint declaration ahead of the youth employment summit (in Berlin on 3 July), in which they deplore the inter-governmental nature of the conference, as no representatives of the European Parliament have been invited to attend. (MB/transl.fl)