Brussels, 29/04/2004 (Agence Europe) - Speaking at a round table organised by the PES in Brussels, on 23 April, the day before its Congress on strengthening growth in Europe, combating poverty and creating better jobs (see yesterday's EUROPE, p16), MEP Robert Goebbels (Socialist, Luxembourg) said: "The fight against inflation is a public good that Socialists must have as their prime objective. The Lisbon process has broken down as we are suffocating in a stability policy that serves no purpose given that there is no inflation in Europe at the moment. We are in favour of stability and growth, as stability without growth is worth nothing. The Stability Pact as it stands is insensitive to the difficult situations of the different countries". He went on to comment that "small States are the more virtuous and the most open to the outside world". This was an allusion to the French and German lack of discipline in budgetary deficit (see also EUROPE of 27 April, p.15). François Hollande, Secretary General of the French Socialist Party, defined "two limits to European construction: 1) Europe records less growth than the main economic areas of the world; 2) the European Central Bank aims at stability and not at growth. The Stability Pact is rigid and contravened. What is more, in our nations as at European level, priority is not given to industrial, education and research policies". Regarding the Stability Pact, François Hollande maintained that it was necessary to reform the pact according to the principle that norms must depend on the economic situation. In low growth periods, it is necessary for the Stability Pact to be flexible allowing for counter-cyclical policies to be carried out.
Furthermore, upon the praises made of the northern countries for successfully conducting their economic and social policy and for the example that they are giving to the rest of Europe, former Greek Commissioner Anna Diamantopoulou (PASOK elected member at the last general elections in Greece) reacted with the comment: "Of course, economic and social policies are excellent in northern countries but, when one speaks of social policy at European level, the northern countries are the first to voice opposition. A little honesty is needed". The northern Europeans were unable to find a suitable response.