Brussels, 17/02/2009 (Agence Europe) - Everyone should be aware that the answer to the current crisis requires coordination to prevent any disorganised response that could harm the single market. This was the message sent out on Tuesday 17 February, by the acting president of the European Council during the second day of discussions between MEPs and their national counterparts about “a new deal for Europe's economic recovery” (EUROPE 9841).
Mirek Topolanek maliciously declared that, “we all know that we are in the same boat but don't we have different classes onboard with different points of view?” He then asked a more fundamental question about whether this crisis was going to, “benefit protectionism”. The Czech prime minister is seeking to protect himself, in fact, by organising the informal summit on 1 March and therefore avoid a “pandemic” of this kind. Topolanek explained that the current situation is such that, “Heads of state and governments should meet up”. He also said that the current crisis is, “to a large extent, a crisis of confidence” in addition to a political component. The prime minister exclaimed that, “if we do not manage to agree on a common approach…if protectionism and mercantilism becomes the norm, we are all lost”.
José Manuel Barroso said that it was essential to mobilise and coordinate and also ruled out economic nationalism and protectionism. The president of the European Commission declared, “we are fighting against protectionism at an international level and we must resist the siren calls in Europe”. He welcomed their early response to the crisis but recognised that the financial markets had to return to their original aim, namely supporting the economy as a whole. He asked whether, “the situation will get worse before it gets better” and then added that he was convinced of the benefits of the European recovery plan. Barroso stated that this plan could not be like that in the US because the variety of situations in Europe made this impossible. Mr Barroso explained that some member states were Euro-zone members, while some were not; others were confronting recession and balance of payment difficulties, whilst some member states were weathering the storm more effectively. The European Commission president also affirmed that, “it is not easy having a common programme for 27 different situations…People are looking to Europe and want it to find the money we don't have” and then underlined the responsibility member states had in defining the EU's financial perspectives. He informed MEPs that, “perhaps next time, you can help us” obtain resources that are appropriate to the tasks. In the absence of a programme of a different scale, the priority therefore remains backing up the execution of current measures without losing the connection between the short, medium and long term.
Member states' coordination capacity on two of the main aspects of the crisis, the economic and social arenas, will be tested at the next two informal summits announced by the Czech presidency (EUROPE 9838). On 1 March, the aim will be to improve stability on the inter-banking market by removing toxic assets from banks and by ensuring that they begin lending to households and businesses again. Mr Topolanek emphasised that the challenge would also be to reaffirm one of the EU's basis principles because, “the free market is our best instrument for combating the crisis”. Topolanek is subsequently partisan to a more long-term approach towards budgetary discipline, which he believes should be adhered to again, “as quickly as possible”. Mr Barroso affirmed, however that the priority is to protect citizens from the effects of the crisis, which is the reason for the second informal meeting of European leaders planned for next May. This summit will examine questions linked to saving jobs (the idea is to develop programmes combining short term employment and training), reintegration into the labour market for those who have just lost their jobs (reorientation in spending towards more active policies) and jobs for the young, whose entry onto the labour market could be set back as a result of the crisis. (A.B./trans/rh)