Jacques Delors added a personal touch to the work of the Party of European Socialists meeting at the end of last week in Porto (EUROPE 9325) by indicating what socialists should, in his opinion, do for relaunching European construction while remaining loyal to their traditions.
Observation. In the 1960s, all the EU countries provided themselves with social solidarity systems covering all risks, by way of a dynamic compromise between the forces of capital and labour. This social model resulting from this compromise, however, is under threat due to the imbalance created in favour of the forces of capital to the disadvantage of the forces of labour. Jacques Delors has already explained on other occasions that the financial world's demands for guaranteed annual investment returns of 15% reduces or gets rid of any chance of distributing a reasonable part of the profits from growth to the workers and encourages job losses. Speaking in Porto he denounced the offensive against the victories acquired and cherished dearly by the social democratic movement during the last 50 years, as well as the imbalance between monetary and economic management. The balance was part of Economic and Monetary Union (EMU) but was left out of the “stability pact” when a pact for the coordination of macro-economic policies with minimum fiscal harmonisation was needed.
Mr Delors specifically rejected tax competition between Member States. Free markets and competition between firms is logical but “if competition between states is added to this, as some quarters are proposing, and which is practiced by some Member States, we will no longer be talking about a political Europe or an economic area defined by rules and governed by law”.
Overall, Jacques Delors illustrates the “deep differences between Member States on the Union's objectivess” and denounces the dysfunctional manner in which the institutional engine of Europe works, namely the triangle of European Parliament/Council and Commission in each of their roles.
Remedies. Delors pointed out that most economic policies, as well as labour market and welfare state policies are within the remit of Member States: “We need to remind the demagogues of this all the time”. In some Member States “where our politician-friends have been are still in power, new syntheses have been found between constraints of the economy and social demands”. Europe's powers are limited, but some initiatives are possible and he mentioned the petition from the European Trade Union Confederation (ETUC) in favour of public services. “The quality of these services and access to them for all is what is under threat. We have to display total vigilance on this subject”.
In a general context, the triple reconfiguration should be pursued between the economic and social dimensions; economic and monetary questions and quantitative growth and development that respect the environment. We need to take action when “words are debased”, give meaning to concepts such as equal opportunities and life-long education and reject formulas such as “'there is nothing separating the world from the nation' because, dear friends, there is Europe”. For the cited reconfigurations, Europe is able to take action.
Currently, we are asking too much from monetary policy and not enough form Economic policy and we therefore neglect the social dimension, through lack of sufficient growth, “Central bankers appear very happy, we are less so”. Mr Delors does not believe that he can convince the whole world by a speech but he asked that the “area for building reflection be open. This does not just involve a change in the status of the central banks but also in cooperation between national macro-economic policies and minimum harmonisation within the Economic and Monetary Union, particularly in connection with the tax band for companies and interest rates. EMU has to become a genuine example of enhanced cooperation, with its own budget that is able to accompany efforts made by Euro zone countries, and, also perhaps with its own economic intervention fund, to be used reasonably, of course. I am asking for this subject to be discussed and not only by the monetarists or leaders who want to be seen in a good light by the monetarists, according to whose ideas are in fashion”.
A minimum of trust needs re-establishing between Member States who should also develop a “psychological armistice” but not pretend that differences do not exist simply because “Heads of government call each other by their Christian names”. Europe needs clarity.
(F.R.)