The Party of European Socialists (PES) has not yet adopted a complete position on the future of the Constitutional Treaty. The Socialist group at the European Parliament voted last January (with several dissenting voices) for the EP resolution on the “reflection period”, but this text, as we know, leaves several options open. Several parliamentarians in this group also expressed their views in a personal capacity, such as Pervenche Berès last month (see our bulletin 9163) but to my knowledge there is no Socialist document equivalent to the European Popular Party's (EPP) “Rome Manifesto” (EPP, referred to in this section last week, see our bulletin 9178). But an essential text exists: Jacques Delors' speech on 22 March to the Socialist group at the European Parliament. Essential, even if some views are not shared by all the group.
In his introduction, Mr Delors pointed out that the European Parliament had become the “engine of European life, the proof of its indispensable character, vital to representative democracy”. This development, in his view, can contribute to getting over the “identity crisis and problem of growth that Europe is experiencing” and which in itself is not surprising, as “good sense indicates that moving from 15 to 25 members requires time; we don't want to admit this, including the new members…a minimum of family spirit is required, mutual understanding, knowledge of their psychology and their national traditions”. And never forget that the acquis in European construction, which go well beyond peace and stability. Jacques Delors then examined the three essential tasks facing Europe today.
1. Re-establishing confidence. Historic experience demonstrates that if no minimum of trust exists between Member States, it is impossible to move on. “Currently, this minimum of trust does not exist”. The aim is not to hide divergences. On the contrary, “one has to admit that there are profound divergences on the Union's aims. We shouldn't try and make out that this does not exist because Heads of State are calling it by its forename. There have always been problems”. Mr Delors pointed out cases of economic and social cohesion and the single currency: opponents focused on the choices about Europe's aims. Member States spoke about it and the decisions taken (sometimes without everybody's participation). The same has to be done today. Mr Delors cities two examples:
a) competition between nations. Jacques Delors reaffirmed his radical opposition to the idea of fiscal competition between Member States being normal in the wider borderless market. He did not outline any overall fiscal harmonisation (unthinkable and even harmful) but was opposed to artificial measures whose only goal would be to influence where companies were set up). Here is what he thinks, “If we add competition between companies to the competition between nations, we're are no longer talking about a political Europe. This would damage, on a daily basis, the climate between countries and is incompatible with maintaining the power and cohesion of a vast economic and integrated block. Let's talk about it and see what we can do even if we don't do everything together (note: allusion to possible reinforced cooperation). But we never want to speak about it. What is our idea of European construction, a vast integrated economic ensemble? Do we accept fiscal dumping, even from a theoretical point of view, as Gordon Brown has done in several articles? Unbridled Competition between Member States is the very negation of the European Community”.
b) the institutional mechanism. According to Jacques Delors, the basic triangle of the Parliament, Council and Commission “doesn't work anymore. The Commission's right of initiative is good. For those who are not convinced of this, I would like to point out that there would be no Erasmus Programme without this right of initiative. The Commission should work permanently with Parliament and the Council, to see what texts are really essential. To do this, a genuine General Affairs Council is again needed and not Foreign Affairs Ministers who, having talked about geopolitics over lunch, get up and go, leaving it to the Secretary of State to make the decision without giving any instructions. Heads of governments have to stop distrusting the Commission and believing that they are going to do everything as the European Council. A true General Affairs Council in this respect is an essential factor. Re-establishing it is not something out of the ordinary but if we get back to this elementary practice we'll be able to see it more clearly and have real debates. The Commission, Council and the Permanent Representatives have to take notice of it, as well as the Secretary General of the Council and his services”.
2. Balance between the monetary and economic chapters. What balance sheet can be drawn up of seven years of Economic and Monetary Union? Jacques Delors states, “The Euro protects but does not provide a dynamic. It protects, including the protection of certain stupidities. Some member countries would have had at a certain moment significant difficulties on the exchange markets if they had kept their national currencies. But we're asking too much from the Euro to ensure dynamism and stability of the whole system…Balance between the economic and monetary chapters was contained in the so-called Delors report of 1989 but is was completely ignored in 1997 when the Stability Pact was devised and which only resolves part of the problem. There should have been, as I recommended on many occasions, a Pact for the coordination of macro-economic policies”. The Commission is expected to denounce the asymmetries between national economic policies but Ministers never wanted to do this. Mr Delors also added, “I can't expect to convince everyone. I am saying that the building blocks for the reflection period have to be laid down”.
In concrete, Jacques Delors indicated three measures: a) coordination of macro-economic policies; b) minimum harmonisation within the Euro zone, particularly with regard to the band for corporation tax and then on rates (see the previous chapter); a budget by EMU itself that supports efforts made by countries that belong to it and “perhaps an intervention fund relating to the specific economic situation and which, of course, should be utilised sensibly”.
He concluded, “I am asking for the subject to be at least discussed and not only by those responsible for monetary affairs or leaders who want to look good in the eyes of the monetarists, depending on what ideas are in fashion. Snobbery does not only exist in society circles but also in ministerial cabinets”.
3. Re-launching the triptych of competition/cooperation/solidarity. Jacques Delors called for the triptych based on the Single Act to be re-established. This introduced economic and social cohesion, recognised the role of social dialogue and highlighted the importance of the environment. Of course national mentalities and traditions should be respected but “it should be known that the market is often short-sighted and its imperfections should be corrected”. He also indicated that there were a number of ways to do this:
a) deepening the internal market. “This is the best way to deal with globalisation. The more the internal market is active and provides outlets, performance and jobs, the more powerful it will become, which will enable us to resist globalisation”. Today it is in the domain of energy where the efficient functioning of the internal market is particularly necessary”.
b)clarifying competition policy. Jurisprudence won't become the “basis of the Treaty tomorrow, there are not enough major political orientations. We need a broad debate on competition. We cannot try and oppose, like some do, consumer and worker. The worker is also a consumer and he creates wealth and is interested in the economy working better”. And it is necessary for the “relevant market, which today is more often than not, Europe, and sometimes the world” to be worked out.
c) energy. This is not just about security of supply: “foreign policy is also in question”. With certain advantages, what cohesion will the EU be presenting to international discussions?
d) infrastructure. “A large market needs cross-border infrastructure: transport, telecommunications, information technology. This is part of my significant nostalgia for the White paper of 1993, which was accepted by the European Council but not put into practice by ministers”.
e) solidarity. According to Jacques Delors, “economic and social cohesion policies are not just a question of money: how it is conceptualised is also important. In the spirit of the Single Act, they were based on the partnership between European institutions and the regions. If we slide away somewhat, hypocritically towards cheques given to countries, these countries will be very happy to get by on these cheques. The difficult moment will be when the 25 countries meet up to share out the money. But then we would be distanced from the spirit of the economic, social and structural cohesion policies. There have to be common orientations that go beyond money. Mr Delors also looked at rural development: if Member States do not reach a balance between urban and rural development they will lose their soul and their strength. On the question of social policy, Delors believes that Europe could “stimulate and assist”, as well as define “a legislative pole” on hygiene, health, security, working conditions, social dialogue and European works committees. The rest is essentially in the national remit with a “European anchor” represented by free movement of workers. Based on this anchor, it will be necessary to reflect on the development of the European labour market and provide more opportunities for the younger generations.
Jacques Delors dedicated the last part of his speech to the institutional chapter and the reflection period on the future of the Constitutional Treaty. I'll be looking at this tomorrow.
(FR)