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Image header Agence Europe
Europe Daily Bulletin No. 11058
INSTITUTIONAL / (ae) ep 2014

Austerity - Schulz and Juncker cross swords

Brussels, 10/04/2014 (Agence Europe) - A debate which was too short, too dense and, in parts, too technocratic to be intelligible. The first televised clash, shown on Wednesday 9 April on France 24 and RFI, between the two leading candidates to take over from José Manuel Barroso - Jean-Claude Juncker for the EPP and Martin Schulz for the PES - left a taste of unfinished business and has so far failed to keep the promises of the political groups in the European Parliament to bring something new to the European elections by making the campaign more personal. The two parties found it easy to claim victory over the other, the debate did not really allow viewers to differentiate between the two candidates or, more importantly, to get a clear idea of their respective programmes.

Juncker changes his mind on eurobonds

Unsurprisingly, the two men clashed the most over economic policies and the austerity cure, inflicted notably on Greece following the start of the crisis in 2008 and on the remedies applied by Juncker when at the helm of the Eurogroup. This gave Schulz the opportunity to bring up Juncker's abandoned ambitions, particularly on the eurobonds and debt pooling. Juncker was in favour of these eurobonds, unlike Angela Merkel, who had grave misgivings. “Previously, Mr Juncker wanted them but that is no longer the case”, said Schulz ironically, suggesting that Juncker had been forced to bury his plans in order to become the preferred candidate of the German chancellor. “It is a question of good sense and feasibility. Germany was not the only country to oppose them”, said the Luxembourg candidate, who added that this mechanism “would not have allowed us to come out of crisis more quickly”. Juncker also pointed out that he had been hampered in his intentions by the SPD, Schulz's German party, which “did not want to introduce them and that made me think again”.

On economic policies more broadly, the two men did not steer clear of the classic Left/Right duel, with Juncker calling for the necessary budgetary discipline and rigour made necessary by years “of side slipping” and poor management, particularly Socialist poor management. For his part, Schulz swept aside the idea that “the unilateral reduction of expenditure would help to win back investors”. “This is incorrect”, said Schulz, who argued in favour of “a combination of a policy of necessary budgetary discipline and strategic investments for young people”.

United in fight against unemployment

The two men saw eye to eye, however, on unemployment and problems for SMEs to access lending. The two candidates also admitted that it is precisely because of this unemployment, which Juncker described as “a 29th member state”, that it is not possible to say that the crisis is over. On the role of the euro as well, both agreed that “coming out of it would not create more jobs”, Schulz told the Eurosceptics and Europhobes, such as the French Front National.

Juncker and Schulz were also asked about immigration. Both want Europe to remain welcoming. Schulz insisted on legal channels and the division of the burden of migrants between the 28 countries of the EU, while Juncker stressed the need for regulated immigration. They went on to discuss institutional reforms and the British opt-outs. The German candidate said that he was “in full agreement on the need to think about what we could do better at local, regional, national and European level” and how to “improve the structure of our decisions”. Juncker said basically the same thing, adding that “we should agree that the EU must be big on the big issues, but should not concern itself with all problems”.

Is there so little to separate the two men? Juncker said that, beyond appearances, “there are considerable differences between the Socialist and Christian Democrat families”. The voters will have the opportunity to see for themselves at the next televised debates: Saturday 12 April on TV5 and RTBF and on 28 April in Maastricht (on Euronews) - a debate to feature all the candidates. (SP)

Contents

ECONOMY - FINANCE - BUSINESS
INSTITUTIONAL
SECTORAL POLICIES
EXTERNAL ACTION
COUNCIL OF EUROPE
COURT OF JUSTICE OF THE EU