Brussels, 27/10/2005 (Agence Europe) - After the fall-out in June this year over the EU's budget for 2007-2013 and the crisis following the French and Dutch 'No' votes on the European Constitution, at the special Hampton Court Summit on Thursday UK Prime Minister Tony Blair tried to get the EU's 25 heads of state to reach strategic consensus on how to tackle the challenges of globalisation and demographic ageing. Given that EU heads of state have differing views on how to update the various social models that exist in Europe, the British Presidency seemed to have chosen a thematic approach, targetting debate on several priority areas where the EU can make progress, like immigration, energy policy, R&D and education. The Commission's idea of setting up a Globalisation Adjustment Fund to help workers who fall victim to globalisation was given a lukewarm welcome (see other article), and the question of the EU's Financial Perspectives for 2007-2013 was not discussed in any detail (Tony Blair had hoped to avoid the issue but said it would have to be settled in December (see other article)).
There is growing consensus on what the EU's priorities should be (regarding globalisation), said a spokesperson for Tony Blair at midday, adding that the evening would reveal what the consensus actually was. 'We may not have the full answers to all the questions tonight, but we should be able to enter a process,' he said. Tony Blair was scheduled to outline the results of the Summit in the evening.
On Thursday morning, Tony Blair opened the meeting, recalling that the British Presidency's aim was to reach a strategic consensus at Hampton Court on the best social and economic direction for the EU in the future, with a view to creating a good climate for concluding the negotiations on the Financial Perspectives in December. He outlined to his colleagues his priority areas (presented to the European Parliament on Wednesday, see EUROPE 9057), namely R&D, development and innovation, energy, universities, immigration and globalisation. The EU needs a common policy in these areas, Blair explained, focussing on the need for greater funding for counter-terrorism and fighting illegal immigration. He wanted the heads of state to agree on this direction before paving the way over the next two months for agreement on the budget in December. He welcomed the European Commission's report, which generally covers Tony Blair's own priorities, outlined in detail to the Summit by Jose Manuel Barroso (see below). The Austrian Chancellor, Wolfgang Schussel, who will be the next President of the European Council (taking over from Tony Blair on 1 January 2006), also welcomed the European Commission's document as a good basis for discussion, but Austria does not go along with the idea of a Globalisation Adjustment Fund. Schussel said the EU did not only have to agree on its priorities, but also had to explain them better to citizens so people start trusting the European project again. Reaching agreement on the Financial Perspectives 2007-2013 at the December European Council will also be crucial to this, he said. Schussel called in no uncertain terms for the draft services directive to be withdrawn, since it cannot be saved. The future Austrian Presidency wants to make progress on Better Regulation (where the Commission has already started work), said Schussel. The spring 2006 European Council will focus, as is standard practice, on economic issues (like the EU's energy strategy, R&D and education), while the June 2006 Summit will focus on the EU's demographic challenge. French President Jacques Chirac said the EU would only manage to meet the challenge of globalisation if it was together and united and if it implemented the necessary reforms while remaining true to its humanist values and social model. Chirac said it was essential to reconcile Europeans with the European project. He was strongly backed by the outgoing German Chancellor Gerhard Schroder, who was at pains to stress he was speaking for Angela Merkel too (the new German Chancellor, who will be taking over from Schroder on 22 November).
The question is whether Europe is only a market, or whether it is also a special model of society combining economic efficiency and social solidarity, said Schroder, adding that the British model is certainly not the right model for the Continent. He warned that people increasingly had the impression the Single Market gave them no protection against unrestrained globalisation and some people even see it as a Trojan Horse for greater international competitiveness. He was contradicted by the Danish Prime Minister, Anders Fogh Rasmussen, who said free trade was the only way to boost competitiveness.
Jose Manuel Barroso says action and reform are needed at all levels to meet the challenges of globalisation and demographic ageing
Jose Manuel Barroso described in detail to the heads of state the ideas mooted in the European Commission's document (used as the basis of discussions on Thursday, see EUROPE 9053). He said Europe had to reform and update its policies if it was to preserve its values, but it would also have to update its policy instruments. The EU is facing a double challenge, he said, of globalisation and demographic ageing, and on top of that, there is the speed of change in society. To meet these challenges, action would be needed at both the European level and through partnerships between the EU and its Member States, said Barroso.
On the European front, the European Commission is suggesting: completing the Common Market in areas like services, telecoms, energy and financial services, and making progress on the Community Patent; ensuring markets within the EU are fairer and more open by constantly enforcing competition and state aid rules; encourage entrepreneurship with conditions allowing businesses to be started up and to prosper (particularly SMEs); improving regulations in the EU and at national level too, to cut red tape for business and individuals, and focus EU legislation on areas where it could be the most effective and provide value-added; get countries outside the EU to open their markets to EU products, with am ambitious and balanced agreement in the Doha Round (at the World Trade Organisation); striking agreement on the Financial Perspectives before the end of the year and on a new Globalisation Adjustment Fund to work alongside the Structural Funds (patricianly the European Social Fund) to provide a rapid citizen-focussed response to the urgent problems arising from globalisation; ensuring the EMU works properly since this is a vital precondition for the jobs and growth; improving European economic governance and ensuring better coordination of economic and social policies.
On the national front, Jose Manuel Barroso said it was necessary to implement the structural reforms and policies agreed under the revised Lisbon Strategy for growth and employment; boost employment rates and cut unemployment through active labour market policies and by encouraging flexibility and adaptability with a view to protect people rather than jobs; changing the idea of pensions, healthcare and long-term care to respond to changes in need, provide appropriate protection and universal access to high quality care, and updating the way risks and responsibilities are shared between individuals and the state; and coming up with innovative solutions for people on a low income.
A new partnership must be developed, he said, between the EU and its Member States to create an environment that stimulates innovation; define coherent, long-term energy policies; dedicate more public and private resources to education, training and skills; promote a renewal of social dialogue at all levels; back efforts to deal with the social impact of economic restructuring; boost cooperation between Member States to increase the effectiveness and sustainability of tax systems and help ensure greater tax revenue by simplifying things for tax-payers and improving economic performance. He said all this could mean updating and simplifying current systems.