Two quite separate, but interlinked, initiatives. It is with great pleasure that, today, I leave hypotheses to one side and return to certainties. All week, I have tried to bring out those elements of the French electoral campaign which would appear to show a renewal of, even a new impetus given to, the European spirit in this member state. I took out what seemed to me to be positive. I am now awaiting confirmation (François Bayrou will speak in Brussels on Thursday 8 March) and taking careful note of what the main candidates say on their desire for regenerating the European project, with a view to reminding, at the appropriate moment, the person who becomes the President of the Republic of what he or she said. But as I quoted and made comment, I often wondered the extent to which the words were based on convictions and serious intentions. We will see.
And now, here are the two people, who have for years been my favourite examples and models for Europe to follow, once again bringing forward something concrete, opening new areas for work and consideration and pointing out new prospects. I am, of course, speaking about Jacques Delors and Jean-Claude Juncker. Two days apart, they offered initiatives which could bring clarity and impetus to the European project: Mr Juncker, at the start of the week, by initiating consideration among eurozone economy and finance ministers on distributing the fruits of growth; Mr Delors, two days later, by presenting the fruits of his reflection on what social Europe can and must be.
It was not I who linked these two initiatives. Jacques Delors himself, when, at the end of Wednesday morning, he presented his proposal for a “social protocol” to be negotiated with a view to its inclusion in the basic texts of the Europe of the future, opened by highlighting “a paradox”: just when everyone is talking about the crisis in Europe, social Europe bounces back. He established a direct link between what he himself was proposing and the euro group president's initiative. Both have always highlighted the link between what derives explicitly from the social field and the economic, financial and also monetary policies. Jacques Delors said it was “astonishing” how eurozone finance ministers now approach the issue (or, at least, the way in which Jean-Claude Juncker presented the initiative, without our being able to know if any minister retained any reservations).
Direct link between the social field and Economic and Monetary Union. Jacques Delors' project, we know, is not a personal initiative. It comes from a decision taken by the Party of European Socialists (PES) a year ago, which led to a report written by PES leader and former Danish Prime Minister Poul Nyrup Rasmussen and Jacques Delors. The report is available from the Party (see yesterday's edition of EUROPE). Rather than summarise it, then, it seems more useful to pick up some remarks made by Mr Delors, over and above the account by Geneviève Brems in yesterday's edition.
Once again Jacques Delors stressed that social matters fell largely under the competence of member states: it is absurd to blame Europe for what does work in this or that country, for the delays in essential reforms or for other problems. Additionally, in Europe, there is no single social model; some analysts have even identified five or six different models, and the Danish model, for example, could not be transferred to some other member states. There are, however, also common problems, such as the ageing population, and, up to a certain point, the response can and should be European. Additionally and above all, Jacques Delors rejects the idea that the social dimension will be closely restricted to issues such as wages, length of the working day or social security. The availability of and our benefiting from “common goods” (like access to water and electricity) are also essential to well-being as wage levels, and the right to education for every child is the basis of it all, the essential starting point.
The links between the social field and Economic and Monetary Union are every bit as important. Jacques Delors does not propose any changes to the Treaty or to the rules governing the European Central Bank (ECB); he has never liked populism. Quite simply, we have to “return to a sensible order of things”, in which there is an “economic authority” (he doesn't even speak about economic government, he doesn't like expressions which provoke fear) and this authority and the ECB have to engage in dialogue. How can this system be made a reality? Through “a sensible and reasonable protocol, which will afford the public a more balanced view of Europe”.
Five possible European measures. Jacques Delors finished his presentation by setting out, as examples, five measures which could be taken at European level:
- adding the economic policy coordination pact (which he proposed when the single currency was introduced) to the Stability Pact, with a view, to allowing the Economic and Monetary Union (EMU) finally to stand on its own two feet;
- swiftly unifying the basis of assessment of the tax on company profits within the eurozone, as a first step towards harmonisation of levels or setting a minimum level, in order to get rid of tax competition between states, a mortal danger for the EU;
- introducing the principle of a minimum wage, not uniform across the Union, but in line with the economic situation and the wealth of each member state;
- within the Community budget, tripling the amount given to the Erasmus programme for student exchanges, a programme which is one of the great successes of European policy;
- giving every young person who has not completed his/her training before entering the labour market a two-year “education cheque” which can be used to complete or update his/her training;
- defining a European outline law on services of general economic interest.
Jacques Delors did not want to become involved in the debate about relaunching the Constitutional Treaty or on the dozens of permutations which are competing with one another, but he felt that the principle of the European social protocol could be approved by heads of state and government in Berlin on 25 March, when they meet to celebrate the 50th anniversary of the Treaty of Rome. The time seems right to him because the oppressive weight of the single thought that the only rules which count are wage moderation and worker mobility seems finally to be lifting. He cited the statement signed in Paris on 14 February by nine member states (France, Italy, Spain, Belgium, Greece, Hungary, Luxemburg, Bulgaria and Cyprus) calling for new impetus for social Europe and setting out guidelines and objectives (see EUROPE 9366).
Mr Juncker's “reflection”. Mr Delors referred especially to the announcement by Jean-Claude Juncker on the reflection, among eurozone economy and finance ministers, on sharing out the fruits of growth. It was not planned that these two initiatives should be announced at the same time; my impression is that Mr Juncker's statement came as a happy surprise to Mr Delors himself, after his press conference had already been arranged. For the content of this statement, I would direct you to the exhaustive report by Albin Birger in EUROPE 9375, and I will restrict myself to the particularly significant passages in what he said in his capacity as President of the Eurogroup.
The debate on the distribution of the fruits of growth is essential and, Jean-Claude Juncker stressed, “it was my firm intention this evening to launch, along with others, this debate … The issue of sharing the fruits of the renewed growth will be central to the concerns of governments, social partners and also EU citizens”. The aim was in no way to encourage excessive wage demands, which must remain in line with price stability and increased productivity: “there is not necessarily any reason to increase wage levels, because wages are not everything. There are other ways to enjoy the benefits of the fruits of growth, like employees sharing in the profits of the company”. He also spoke of improving the social dialogue and the dialogue between the social partners and the Eurogroup.
It should be emphasised that the German finance minister and Ecofin Council President, Peer Steinbruck, stressed that company and shareholder profits have exploded, while there have been reductions for the lowest paid and the middle levels. European Economic and Monetary Affairs Commissioner Joaquin Almunia observed, for his part, that workers' wages, as a proportion of member states' overall income, are at their lowest level for many, many years, and he thought that this situation could not be sustained.
Confronting the dangers of a “crisis of legitimacy”. In conclusion, may I point out that neither Jacques Delors nor Jean-Claude Juncker is considering any changes to the competence and autonomy of the European Central Bank: the management of the euro is in no way being questioned. There are other instruments to be used to confront the legitimacy crisis which could, in their opinions, threaten the European Union which lacks the proposals and reflection which they each have initiated.
(F.R.)