What the citizens demand. The prospects for the Barcelona Summit now seem good. The possibility of rekindling and revitalising the Lisbon Process while respecting the balance between the opening up of markets and the affirmation of the European model of society (see this section of 8 March) is real. Sure, it will not be what one calls a "popular success". A timetable for the liberalisation of the electricity market and further progress towards a unified financial market will not monopolise the front pages of newspapers. A declaration on the situation in the Middle East or any other declaration on foreign policy will easily steal the show. And yet, it is these results that may bring us closer to what citizens are calling for: more jobs and faster growth.
The president of the EcoFin Council, Rodrigo Rato, explained the reasons. The euro is now there, with all the advantages that implies; the timetable for re-establishing a balance in public finances exists; the co-ordination of economic policies is progressing but cannot be improvised. Immediate demands, therefore, concern structural reforms, that have progressed but are still somewhat behind schedule, and which alone can guarantee long-term growth which, in turn, will render job creation and the other Lisbon objectives possible. Rodrigo Rato then summarised the objectives of Barcelona as follows: firm timetables and commitments for opening up the energy, transport and telecommunications markets; progress in the reform on the labour markets to that "work seems to citizens preferable to benefits and pensions"; confirmation of the timetable for financial market integration.
Markets will punish us the following day. Commission President Romano Prodi shared this analysis, with a few additions, stressing that the European Council of Barcelona has to focus on a limited number of priority fields so as to "contribute to our capacity for sustainable long-term growth". Indeed, many aspects of the Lisbon Strategy will be raised in Barcelona, and Prodi's letter (reproduced in No. 2271 of our EUROPE/Documents series) provides many details; efficiency demands not mixing the lengthy list of statements of principle that we shall find in the Summit's "conclusions" (the text is almost ready) with the few expected operational decisions. According to Commission Vice-President Loyola de Palacio, "the Barcelona Summit will be a success if it reaches an operational compromise on gas and electricity". Her synthesis is excessive, but it is certain that, in the avalanche of texts that will emerge from the Summit, few phases will actually count. On the specific issue that concerns her as person responsible for the energy sector, Ms. de Palacio wants to be optimistic: "nothing is done so long as we don't do it, but I believe that there is a prospect of a positive result". She then adds: "we cannot allow ourselves failure in Barcelona; the following day, markets would punish us".
A double balance to find. Where lie the problems? In the double balance to be found:
- in one specific aspect, that of obligations to quality public services. The Commission points out that its proposals relating to the internal market for electricity take on board the "public service" dimension more than any other Community legislative text. Specific provisions aiming at: the protection of consumer rights in general, the specific protection of vulnerable consumers, the obligation to provide at reasonable prices even in outlying regions, in addition to environmental protection and the capacity for interconnection. According to certain Member States, the Commission has even gone too far. But France would like a framework-directive introducing the same principles for all public services of a general interest, and ETUC (European Trade Union Confederation) agrees. Emilio Gabaglio explicitly said so last week (see our bulletin of 6 March, p.17). The Northern countries, on the other hand, are still unsure about France's real willingness for market opening, Swedish Prime minister Goran Persson did not conceal that (see our bulletin of 7 March, p.15) and the debate in the European Parliament proved the scale of the differences that remain.
- at the general level of employment policy and social guarantees that must accompany the opening up of markets. Emilio Gabaglio declared that he thought "all the ill possible" of the joint Blair-Berlusconi document on labour market flexibility, and that even the Commission's attitude seemed to him at times contradictory (see aforementioned bulletin). Unice Secretary General (employers), Philippe de Buck, on the other hand, considers that the re-launch of the Lisbon programme needs to go even further.
It would be incomprehensible that the heads of government should not manage to define formulae that respect the balance enshrined in the Lisbon Programme and resume the march towards Objective 2010 and its complements, among which - essential! - sustainable development. (F.R.)