The intentions of the Presidency. During their meeting in Nice on Thursday and Friday, the economy and finance ministers of the EU intend to review all subjects of a topical nature, plus a few others. The French President of the Ecofin Council, Ms Lagarde, has indicated the following as subjects for discussion: European and global economic prospects; the situation on the financial markets; improving the mechanisms for supervising the activities of the financial players; developments in oil prices and the likely sustainability of recent reductions; the scope of application for reduced VAT rates. She added her intentions to take stock with her colleagues of company bosses' pay, to identify best national practice targeting well-documented abuses. Ms Lagarde listed a few approaches which she recommends at European level: speeding up initiatives for reinforced governance of the financial markets; the project for European-level registration of ratings agencies; the weekly publication of oil stocks as a contribution to the fight against speculation. Other topical subjects include German plans to keep an eye on takeovers of national businesses by sovereign funds of third countries, and the relaunch of the debate on tax competition between member states. On these two hot topics, however, the European Commission and the European Parliament currently have the floor.
In favour of a new mandate for Mr Juncker. As well as developments in the Euro-dollar exchange rate and cooperation with the European Central Bank (Mr Trichet will attend), the Eurogroup will also raise the question of the renewal of its presidency, ahead of the expiry of Mr Juncker's mandate. Some time ago, Mr Juncker said that he would not ask for his mandate to be extended; last week, however, (see previous bulletin), he clarified: "I said that I would not ask. If, however, the proposal was put to me, I would not say no". This would imply that the Ecofin Council would have to amend the protocol of September 2004 which provides for a two-year mandate, renewable once; if this is done, the Eurogroup will be able to take position.
Do I need to point out just how beneficial it would be to extend Jean-Claude Juncker's term in office? He comes from a small country which cannot be accused of defending national economic objectives; as its prime minister, he takes part in the summits (of which he is the most senior member, by a very long way); his equilibrium, together with the necessary firmness, is highly valued by all of the countries of the eurozone. To fail to take account of his inclination to continue in this office would be absurd, even though there are two candidates (Mr Reynders and Mr Solbes) who would be prepared to take over from Mr Juncker.
Criticising the euro - an incurable disease. Just recently, the dollar has recovered considerably compared to the euro; global balance has therefore improved, and European exports have benefited from this. Who can forget the tirades we heard until very recently against the excessive strength of the euro, which was ruining the competitiveness of European industry? Recent developments should logically, therefore, have come as a great relief, heralding a chorus of statements of delight. Not at all. The enemies of the euro have repeated their laments, but this time arguing the opposite logic: the European currency is becoming weaker, what a failure for the EU; one might almost get the impression that certain people are simply trying to hold the currency responsible for their own shortcomings and mistakes, and those who oppose European integration have just one concern: to blacken Europe, whatever it does. Will the day come when we find the legal means of calling on these constant pessimists to leave the euro? This would be a relief.
On the sidelines of the extraordinary summit of 1 September, Mr Juncker spoke of his ideas to deal with the economic slow-down (see our bulletin 9731 of 3 September), and he repeated them in the interview referred to in our previous bulletin. There were no miracles or extraordinary initiatives to be undertaken, but: a) avoid, at European level, any generalised relaunch plans for budgetary expenditure, which would later require the resulting imbalances to be corrected; b) take account of the different situations of the Member States. Only the virtuous countries with budgetary surpluses can bring the automatic stabilisers into play (Spain, for example); c) The EIB (European Investment Bank) could develop a broad programme of support for small and medium-sized enterprises, which are more resistant when it comes to redundancies and, very often, more innovative. Mr Juncker had not forgotten his favourite themes: reinforced dialogue with the ECB (European Central Bank) and more regular meetings between the Eurogroup and the social partners.
(F.R/transl.fl)