Open to current and future Member States. How can EMU be reinforced, respecting the "Community method" given that Eurogroup is intergovernmental, the Commission is no more than a guest and the European Parliament is not involved in any way? Jacques Delors suggests using an existing Community instrument that has never been formally used to date - "strengthened co-operation", by turning eurozone Economic and Monetary Union into strengthened co-operation while leaving it open of course to all the other existing and future Member States. Delors put forward this idea in an interview in the Figaro with Badouin Bollaert published on 19 December 2001, where he said:
"The Ministers of the twelve countries can talk with each other in Eurogroup, take decisions and avoid asymmetrical shocks, but they do not have budget and financial powers of their own - decisions have to be taken by all 15 Member States. With the strengthened co-operation instrument (incorporated in the Treaty), they could set up a cyclical regulation fund, for example… EMU requires the use where necessary of common means to try and bridge the inevitable gap between Member States' economies and also deal with external shocks." The eurozone (EU12) has to be able to take such decisions itself.
The miracle of vision. To continue the (unofficial) quotation: "when the Germans proposed the budget and stability pact in 1997, I suggested adding an agreement to co-ordinate economic policies but was not listened to because everyone wanted to keep room for manoeuvre. That's all rather derisory. We should move in the direction of true economic convergence - the political will is needed. For the moment, many European leaders are obsessed with the short term and don't see anything wrong in that. I would rather see the miracle of vision working to push them to take action than the challenge of recession."
Which of the current heads of state has this vision? Again, Delors is one step ahead, particularly since he recommends raising the ceiling for the Community budget above the current 1.27% of GAP and the possibility for the EU of borrowing to make investment that will benefit future generations (an idea he put forward in his White Paper, a veritable mine of ideas for Europe). This instrument could turn Eurogroup into an EU body under the "Community method" while waiting for the new Treaty. It's one of his ideas on how to make progress in the European project that deserves careful study at the very least, and would
- allow eurozone countries to strengthen economic co-operation, as desired by various Ministers and other personalities (see my column in yesterday's EUROPE) and
- get round the disadvantages connected with the eurozone countries being in a minority on the ECOFIN Council at first, in an enlarged Europe but this Council is at present the only institution authorised to take economic decisions.
The obstacles are legion. The obstacles are certainly legion. Valéry Giscard d'Estaing recently expressed reservations or reluctance about the idea of reinforced co-operation itself which could lead to a series of agreements that would make Europe completely illegible, and he expressed preference for the system that had led to Europe's monetary union - everyone is involved in the decision making but nobody is compelled to apply the decisions. But don't countries applying an agreement of this sort have the right to manage its implementation itself, even if they are in a minority in the institutions?
The Delors formula will no doubt be opposed in the three states that decided to stay out of the single currency, the United Kingdom, Sweden and Denmark. The euro's success has speeded up their governments' thought processes and they are now trying to convince their populations of the need to join the euro while being careful to avoid upsetting people by given the impression of wanting to force them either way. Timetables have been drawn up, public opinion seems to be changing (even though some of the UK press remains decidedly and aggressively anti-European. The British and Danish people have been so submerged in lies about what the meaning and aims of the European project are that rather than being able to remedy deviations or excesses in the project from the inside, their countries are on the outside of certain key areas. A pity for them, but they chose it. We have to respect their choice and move on.
The Delors plan is one of the initiatives that could help us progress. We are waiting to see how it goes down. (F.R.)