Brussels, 03/03/2009 (Agence Europe) - During a conference organised on Tuesday 3 March in Brussels by the PES, several Socialist figures appealed for a greater and better coordinated European response to tackle the crisis. Participants were determined to affirm their ideas ahead of the forthcoming European elections and said that the current reflection should lead to fundamental and lasting changes, which a Social Democrat approach appears the one capable of initiating.
Massimo D'Alema underlined the basic contradictions in a neo-liberal globalisation that, “dominates our economy” and denounced the, “dramatic democratic deficit” in the global financial system, as well as the “deficit in social justice, which has increased over recent years” in our societies. The former Italian prime minister and president of the Italianieuropei Foundation said that this crisis demanded public intervention and should be understood as constituting an occasion for, “imposing profound changes”. However, he did say that, “it does not appear to me that the European response is based on brave decisions” or is sufficient. He said that the most socialist kind of response appeared to be coming from the US Democratic administration. D'Alema said that the initiatives from the Europeans were rather confused and not adapted, which illustrated the, “weaknesses of the European institutions”. The Commission is reduced to, “ex post approval of decisions by national governments” of member states, which are multiplying the number of informal summits”. He explained that this tendency is proving disastrous and called for better coordination with clear objectives, “only a strong European impetus can help prevent the danger of a nationalist reaction…we must reinforce our common institutions and relaunch our values without waiting”. D'Alema said that it would be a serious mistake if they were to promote a two-speed Europe with each to their own in dealing with the crisis and leaving European integration on the back burner.
Backing this up, Poul Nyrup Rasmussen explained that they needed to adapt their response to the scale of the crisis. The former Danish prime minister hammered home the fact that what they had done was not enough. He also criticised the lack of coordination and pointed out that they needed a new reinforced investment strategy to meet the problems of growth. the Commission forecast a fall in GDP of 2% this year but Rasmussen said that it would be much worse around -3% or even -4%. During a conference organised the same day, the Commissioner for economic and monetary affairs, Joaquin Almunia, admitted that there were risks of the current forecasts getting worse. Rasmussen said they needed new recovery packages of 1.5% for 2009, the same for 2010 so as to limit an explosion in those on the dole.
Beyond the crisis' devastating effects, is astonishing at an intellectual level. Michel Rocard described its as “a prodigious intellectual victory of social democracy”. He deplored the fragility of work to benefit of capital. He criticised the casino economy, characterised by improbable dividends on investment. He also expressed concern about risk dilution and called for derivatives that were disconnected from reality to be eradicated. According to the former French prime minister, reflection should lead to a reorientation in the idea of flourishing in the quality of life, culture, health instead of money.
Professor of European economic policy at the Free University of Brussels, and initiator of the Lisbon strategy, Maria Joao Rodrigues said that Europe could be more efficient but it needed better coordination in the Euro-zone (and an exact calendar for accession for those who are still not part of it), as well as stronger relaunch packages, new instruments (Eurobonds), stronger industrial policy, more efficient regional policy and strengthened social policies (“we are just at the beginning of the social fall out of the crisis, the worst is yet to come, I fear”. He asked about opportunities for creating a European framework to control redundancies in difficult times. (A.B./trans/rh)