Brussels, 28/01/2009 (Agence Europe) - With nine months to go before the mandate of the European Commission expires, its president, José Manuel Barroso, granted an exclusive interview to Agence EUROPE, which we are publishing in two parts. In the first part, as presented below, Mr Barroso refutes any direct Commission responsibility in the current financial and economic crisis and points his finger at the member states, which he claims blocked all attempts at coordinating and fostering regulation of the financial markets at a European level. The president also rejects criticism of his Commission for not having done enough to help social Europe make progress and on this point too, highlights the direct responsibility of member states.
In the second part of the interview, which we publish tomorrow, José Manuel Barroso, explains the Commission's current and future institutional role, its relations with the European Council and the political and institutional implications of the Lisbon treaty. He also talks about the appointment of the new Commission next autumn, as well as his personal ambitions. (H.B./trans/rh)
EUROPE: Your political opponents at the EP and elsewhere consider that you bear some responsibility for the financial and economic crisis. They reproach your Commission for its “passivity” over financial market regulation over recent years. What is your reply to this criticism?
José Manuel Barroso. This criticism is groundless. The Commission does not have any power to regulate the American market. Everyone knows that this crisis has its origins in the USA and a certain sector of the financial market that contaminated the entire global economy. The negative aspects that affected Europe have, for the most part, nothing to do with the lack of regulation at a European level. There were mistakes and shortcomings in supervision at a national level. Supervision in Europe is national. The EU does not, unfortunately, have a remit in this domain, neither does the ECB or the Commission. Until now, member states have always reacted negatively to the Commission's proposals. My Commission and the Commissions that preceded me never had the support of member states for making more of a coordinated supervisory effort at a European level. Therefore, I cannot accept this criticism. I am not saying that everything we have done is perfect, not at all. I quite willingly acknowledge that in certain areas, we could have perhaps done more and done it earlier. Some of the criticism you mentioned in your question results from the old and unfortunately very widespread tendency in Europe to look for a scapegoat. And you know that it is easier to make Brussels (the Commission: Ed) the scapegoat rather than identify those responsible at national level. I see that some are very actively criticising the Commission when they should be addressing the same criticism at the political leaders of their countries and sometimes even the leaders of their own political parties.
EUROPE: The member states are therefore to blame?
José Manuel Barroso: I mean very clearly that the Commission is not responsible (for the lack of financial regulation: Ed). The Commission has never been a brake on further integration. On the contrary, it has always been the driving force of European integration. And if there has not been more European integration, including that in the financial arena, it is because member states did not provide us with the necessary conditions, if only those needed for beginning European coordination on certain specific dossiers.
EUROPE: Even if member states were not at all interested in European rules for financial regulation, was it not the role of the Commission to propose them all the same?
José Manuel Barroso: We made certain proposals. But let's be honest: it was impossible to envisage this crisis in the previous context. Now, everybody is claiming that they saw it all coming. This is not true! I, myself, spoke with certain Heads of State and Governments to try and go further towards a European approach in the matter. The answer was absolutely no!
EUROPE: Any concrete examples?
José Manuel Barroso: Let's take, for example, the rating agencies (on which the Commission submitted a draft regulation in mid-November 2008, EUROPE 9781: Ed). We had already been talking about such a proposal for a long time but the response from member states was absolutely no. In some cases, those who were blocking at the time are now those most keen on regulation! I can assure you that between August 2007 and the outbreak of the current crisis with the bankruptcy of Lehman Brothers, we made many attempts but these were dismissed outright by member states, even those that have large financial sectors. On the question of whether the Commission should make proposals even when they have no chance of succeeding, I would like to say the following: I think that a lot of attention should be paid to the negative impact of effects from announcements. Announcements that have no effect threaten the credibility of the Commission and Europe as a whole.
EUROPE: Leaving aside who is to blame, isn't the current financial and economic crisis casting a shadow over your Commission's accomplishments, a Commission whose main priority was reform of the European economy?
José Manuel Barroso: No, on the contrary! This crisis has lifted the Commission to a level of influence it has never previously reached in financial matters. For example, in the past, the Commission was not part of the G20. Today it is a member, owing to this crisis and the visit I made with president Sarkozy to see the American president in Washington (in November 2008: Ed). The Commission was at the origin of the overall response. All proposals made by Europe to get out of the crisis were made in partnership with the Commission. I think the Commission seized the opportunity provided by this crisis and strengthened its role and that of Europe. Today, there is much more of a demand for Europe than a few years ago. In the relations we now have with the US and our main G20 partners, when they want to know Europe's position, they immediately come to the Commission because beyond the rotating EU presidencies, they know quite well that it is the Commission that represents the Union's stability and coherence.
EUROPE: Despite your policy to promote a “Europe of results”, a Europe that responds to the concerns and worries of its citizens, the current Commission has not been particularly ambitious on the questions on which there are, nonetheless, high expectations from citizens towards Europe, such as social Europe or a more restrictive policy regarding Genetically Modified Organisms. Why?
José Manuel Barroso. On the question of a social Europe, let's be clear. I am very committed at a level of economic and social cohesion. I always have been… The Commission is criticised for not having done enough in the social domain. I don't accept this criticism because it is sometimes the same people who criticise us but who don't want the Commission to expand its remit in social affairs for subsidiarity reasons. If we have been unable to do more, it is because in the current situation, some member states do not agree with the Commission playing a stronger role in the social field…During a recent European Council, I proposed the increase of food aid inside the European Union because there are still many poor people in Europe who do not get enough to eat. Do you know what the response of the European Council was? The answer was no! Everyone takes care of their own poor, so they told me. By invoking arguments of subsidiarity, they said that Europe should not do more in the social field. This is a fundamental problem that needs resolving…Moreover, certain member states, those that wanted to limit the EU's financial perspectives to 1% of its GNP, opposed a more ambitious budget for the social field… We have taken initiatives. I would like to point out that the “European Globalisation Adjustment Fund” was created following a personal proposal I made. We also adopted the renewed social agenda.
As for GMOs, we have a very clear position: to follow scientific advice. We want to, however, clarify responsibility for decisions. We are currently discussing with member states how to clarify the decision-making process, which is extremely complex.
EUROPE: Has the “Europe of results” borne any fruit for its citizens?
José Manuel Barroso: I am very proud of what we have done for citizens. We have taken very concrete measures that enable citizens see the benefits of Europe, such as, for example, roaming (international mobile telephone roaming), passenger rights, patient rights, non-discrimination etc. It is with these decisions that we have been able to demonstrate that Europe brings citizens more. Our very strict policy on State Aid and competition has also had very significant financial advantages for citizens and saved billions and billions of Euro. The internal market is the major ally of consumers…Every time we fight a cartel, we also defend citizens' interests. Who other than the Commission has the courage to confront the big multinationals, whether they are European or American? Citizens are not always aware of this.