Brussels, 23/10/2014 (Agence Europe) - The difference in the respective positions of Germany and France as expressed at the beginning of the European Council on Thursday 23 October, on the current economic situation, was quite pronounced.
Unsurprisingly, German Chancellor Angela Merkel highlighted the need for a “credible” respect for European budgetary rules. She believes that due to the significant deficits that remained, there would not be any growth. She is also convinced that budgetary consolidation will be needed before there is any growth. At the opposing end of the spectrum, the President of France, François Hollande, provided assurances that nothing would distract France from its objective, that of growth being Europe's priority. Meeting up with other European social democratic parties in Paris earlier in the day, he hammered home the need for growth, “because it means jobs; growth means Europe's future”.
British Prime Minister David Cameron is pleased that his country's economy is fully functioning but did express concern about the health of certain economies in Europe.
At a formal level, the European Council should be limited to underlining respect for the Pact and the possibility of using the flexibility already included in the examination of the 2015 budget projects (EUROPE 11182).
On Wednesday, the European Commission, which is analysing the draft finance laws in eurozone countries sent to it in the middle of October, made a written request for clarification from five countries (Austria, France, Italy, Malta and Slovenia) because it has feared that their budgetary policy could infringe the pact.
During the Social Tripartite Summit, the outgoing president of the Commission, José Manuel Durão Barroso, did not confirm such an initiative. Neither did he deny that his services have officially contacted the Italian authorities. The Italian minister for the economy had made the surprising decision of publishing a 'strictly confidential' Commission document on his website. Barroso explained that they had not appreciated this “unilateral” publication carried out in the context of “quite technical” discussions that would move forward more easily if they remained “informal” and in a climate of trust. He criticised the lack of professionalism displayed by certain Italian media channels, which he blamed for this leak. He underlined the importance the European institution placed on its role as “guardian of the treaties” and ensuring respect for existing rules, even though he said that he was personally of the opinion that their interpretation had to be done with “a maximum of flexibility”. According to the latter, the objective is, above all, developing a satisfactory solution to everyone, based on a triptych of healthy public finances, structural reform and investment. (MB)