newsitems

 

*Strasbourg/EU Parliament/Angelo Marcopolo/- EU's probably most important and topical, High-Tech. Space program, GMES, ("Global Monitoring for Environment and Security") may be threatened by costs' reductions for sums equal to ... Turkey's controversial and unpopular EU bid, revealed the replies to "EuroFora"s Questions by Inter-Group on "Sky and Space" leading MEPs, and EU Parliament's Rapporteurs on GMES, in a Press Conference in Strasbourg where the issue started to be discussed in view of imminent, forthcoming EU developments and decisions :

A group of MEPs from various political Groups and Countries recently wrote to EU Commission's President Barroso a Letter protesting against a Draft which is going to exclude, for the 1st time, GMES from EU's Multi-Annual Financial Perspectives 2014-2020, restricting its Funding to merely annual EU Budgets' decisions, with the obvious risk to provoke uncertainties incompatible with long-term Investments, and to leave the strategic High-Tech project, totally or partly, at one or another moment, in limbo.
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     "EuroFora"'s questions to EU Parliament's Repporteurs on GMES started by reminding the fact  that "there were also in the Past some Delays on funding another landmark EU's Space Programs, such as, f.ex. GALILEO (on Satellite Navigation Systems), and Europe lost an opportunity to have, f.e. China a.o. 3rd Countries paticipate for some 400 Millions €.. So that, now China has its own Satellite Navigation System.. Do you think that there might be similar, or even worse, risks now if EU delays also its GMES program ?", we asked the Inter-Party Group of MEPs.

    => But, entering substantial issues, "EuroFora"s 2nd Question concluded by asking the competent EU Rapporteurs from various poliical groups, to clarify "How much is the Money, what kind of volume of Money are we speaking of (in the case of GMES) ? Can we compare it, f.ex., with other (EU) expenses, for which the Money apparently exists, in order to have Debates about  real and concrete Political Choices  ?".
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    Norbert Glante, experienced former EU Parliament's Rapporteur on GALILEO, and current co-Rapporteur on GMES for Industry/Research, a German Socialist MEP, started to reply to "EuroFora"s question by observing, first, that "these are 2 Differend EU Projects : GALILEO is an Infrastructure project, that the EU Commission is funding wholesale"

    - "At the beginning, the GALILEO project was meant to be a Public-Private partrneship. Two consortia competed, but afterwards they went together, they merged, and there was, therefore, no more competition. With the consent of (EU) Parliament, the Commission decided, then, to fund  itself the program.

    - Now", ²"it's true that "we had Delays", but "they were not just for the Funding : There were (also) Technical Delays, there was f.ex. a Partner in China that steped out, etc.". However, "Today, our Hope is that EU Commission is able to send out 18 Satellites in orbit by 2014, and guarantee a 1st step. This is not the original idea, but hopefully it will happen", he concluded.

    + "GMES requires 5,8 Billions €, which means that we can get Satellite configurations in Orbit. National/Private Telecommunication Satellites could be added to. They could provide Data to create (New) Services. If you put the 5,8 Billions €, this is Money which should be ready to be provided during the next Financial Perspectives Period of 2014 - 2020,  and, if we have a Budget Debate, when we look at the Financial Perspectives, we know that the (EU) Parliament has significant clouts and influence."

    - "You have to set Priorities, of course you do. But I think that when it comes to Space, when it comes to Industrial Policy, I think that we (EU) have a Competitice Advantage to the World, that we need to keep that. "We need to keep our Technological Future in our own hands. We should do it here, and I think that we should do it in the EU, and, therefore, in the EU Budget". Because, "if we start to pull away, we'll end up with a situation where an American Ambassador will come to fruition and say : - "Just let Stop everything, and buy it all from the States !", Glante warned.
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    + But Italian, ChristianDemocrat/EPP MEP, Aldo Patriciello, EU Parliament's co-Rapporteur on Satellites, gave an even more specific answer particularly to "EuroFora"s most crucial, 2nd question (See supra) :

    - "I want to remind that it's important to think about the Funding, by considering (also) what it had costed until Today : GMES has costed 3 Billions € until Today. So, if we don't invest in it, this basically means Wipping away all those enormous investments and efforts made until today", he pointed out.

    - But "GMES is critical into tackling Climate Change, Environmental degradation, Border Control, Maritime Surveillance, Civil Protection, etc. i.e. ¨Priorities which are part and parcell of our (EU)'s overall Strategies"  => In consequence, "I think that here, we need to stand Firm in the (EU) Parliament. We need to make Sure that the EU Commission includes the GMES in the 2014-2020 Multiannual Financial Framework with around 800 Millions € in order to get to the 5.8 Billions € which have been mentioned".

    - "But, let me remind you, that this Budget is important also because of the Economic Return for Europe : It is estimated that the Economic Return would be 69 Billions € in the long run. So, this is also going to help (EU's) Economic Recovery", he warned.

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    - "Just to make it clear", "EuroFora" questioned further Patriciello : - In other words, "this (GMES) means something around 900 Millions € per year, what Mr. Glande said.  i.e. just what EU gives f.ex. for simple Accession Negotiations with one Country, f.ex. Turkey", we observed.

    => -"Yes : It (GMES) is 850 to 900 Millions € per Annum", admitted Patriciello, i.e.  almost exactly what EU spends annually just for Turkey's controversial and unpopular EU bid !..
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 - "Let me give you un Example, which is the Conservation of Rain Forests", went on to add in Reply to "EuroFora" Questions, Professor Vittorio Prodi, President of the "Sky and Space" InterGroup, and EU Parliament's Rapporteur on GMES and Environment : "Those Countries where Rain Forests are allocated, if they want to help the rest of the Planet, then, they have a Right to Compensatory Payments. Now, all of this could get into the parts of the (CO2) Emissions' Trading Scheme. And this is a contribution which could mean that the GMES has a real boon in terms of Financial Resources, so that, basically, this Infrastructure will pay for itself, in very short order"...

    - "Therefore, I think that it's absolutely Right that we focus on these Points" (on comparing Funds, as "EuroFora" suggested : Comp. Supra). "Not only this program will pay for itself, but it will also have an immediate counter-cyclical impact", Prodi concluded.
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     - "On issues like GALILEO and GMES we always had the large Majority of EU Parliament with us. So, we intend to ask to (EU) Member States to put the Money where their Mouth is, and to recognize where the Value is", particularly when they speak about (EU) Industrial policy, Growth, etc., Glante anounced about forthcoming MEPs debates and Votes.

 - "These are precisely the kind of projects where there is a Time Gap between the Investment and the Return. .. So, if an IPP doesn't work, then, we have to insist on Project Bonds : This in a European Value Infrastructure !", Prodi concluded.

 

Clearly and pedagogically replying to MEPs' questions in EU Parliament's Economic and Monetary Committee, the new ECB President, Mario Draghi, carefully but optimistically,  focused mainly into stressing that, despite the "Serious" risks at the present Global Crisis, €uroArea can succeed to face the challenge "if" it acts with "a well-coordinated, coherent and properly timed strategy", as it has already started to do, at least during the recent Months. While controversial UK-USA Rating Agencies should not be taken so seriously and would better face some Competition as French a.o. MEPs ask. And Greece's controversial PASOK Economic Plan on how to meet the overal Financial Targets agreed with the EU on October 2011 had better be reviewed, as he observed, after reiterating the general ESRB's call launched since late December 2011, as "EuroFora" had immediately reported (see relevant previous NewsReport).

 

After concluding, a smiling Draghi tried in vain to pose a while at least for an "EuroFora" Photo, but was immediately '"bombarded" by several more MEPs' questions up to EU Parliament's long corridors... 

In particular :

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UKUSA Rating Agencies lost Reputation
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Replying to a critical question by EPP Party representative, mainstream French MEP Gauzes, on the 3 UK-USA Rating Agencies, President Draghi observed from the outset that "all the Rating Agencies had a terrible Loss of Reputation, over the last (Global) Crisis,
Therefore, we should learn either to live without them, or to use them only at a lesser extend, among many other information sources. So, much less Mechanical reliance on them", he advised.

And the fact that we don't have Competition in the Rating Industry, is really an issue,  Draghi criticaly observed.

=> - "So, whatever we do to increase this Competition, is well done", ECB's new President stressed, speaking in Strasbourg the same Day that the Leader of French Governing Party UMP's MEPs, Jean-Pierre Audy, just reiterated his call for the EU to support the Creation of a European, Independent and professional Rating Agency, while also advancing the idea for the establishment of a New, World-wide Rating mecanism supported by the IMF and/or the UNO.

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Draghi : 3 steps Plan for €uroArea, (focused on Structural Reforms)
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But, the most interesting of all was Draghi's overall presentation on what shoud be €urozone's overall Action Plan, that he highlighted in reaction to the claim launched by Socialist MEP Bullmann éthat, "WIthout Investments, people have said that we'll slip in a kind of visious circle", as he had said...

 - "We have 3 sets of Actors ; If they all do and act consistently and effectively, then, we [EU) will reach Stabilisation", ECB's new President highlighted in reply :
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1st, National Governments. They have to put into place serious Fiscal Consolidation Plans.
What one sees accross Europe is Encouraging. Basically, Governments show a will and a Determination in pursuing Fiscal Determination in different (EU) Countries.

However, we shouldn't deny the Truth  : Fiscal Consolidation, if it's strong, as needed, this will have a "Short Term output Contractionary effects", as he noted.
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=> So, what can we do to Mitigate these efffects ?  An answer is that Economic Reform should be made also with Structural Reforms that increase Competitiveness, enhance Growth, and create Jobs.

Growth and Job creation in a area where Unemployment aproaches 10%; becomes more and more an objective to be pursued, together with consolidation of Budgets.

In fact, Growth and Stability are Complementary to eachother. Because there can't be any Sustainable Financial Stability without Growth", (as f.ex. the case of Greece also proved recently).

That's the 2nd part.
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+ The 3rd Actor, is a sort of "FireWall" , in the sovereign bonds' Market, ECB's new President added.

Because, we started this situation when Debts became big, but, during a certain period of Time, Markets are still "fragile" ("not only in Europe, but all over the World"), and, clearly, more than 5 Years ago, you practicaly didn't have but only some tiny spreads, since they were Not reflecting the Differend Risks.

But, then, after the Lehman brothers' crisis (in the USA), the perception of Risks Hightened, Investors started thinking that some had lied to them, Spreads started to grow dramatically, and, from Under-Shooting, (as previously), now they went towards Over-Shooting the differences in Interest Rates.

=> Therefore, there will be a Time when a "FireWall" would be really Useful, Draghi warned.

Because you'll have to avoid a moment when the Cost of Credit would be geared not to the Short-term, as we (ECB) do when we lend to Banks, but to the Alternative Investment, which is a Government Bond. So that the Cost of Credit would reflect the Higher level : i.e. the Government Bond, and not the Lowest Rate that we (ECB) ask the Banks to pay for that, he explained.
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=> As for the 500 Billion € move made recently by the ECB, (See 12/2011 "EuroFora"s NewsReport), it "is functioning", but we have to give it some Time yet. We (ECB) actually view it as being an Effective Measure, and we have several Proofs about it, he added.
Let me resume the Measures we took during the last 2 Months :

- We launched the unprecedented 3 Years Liquidity Facility, at 1% interest rate,

- We have halved (-50%) the Minimum Reserve requiry Ratio, from 2% tp 1%, so that it wil Free more than 100 Bilions € in collateral.

- We have broadened the Collateral Rules so that even Banks which are not Big enough, ca, actually access to the collateral, to the ReFinancing Facilities. (The reason being that the Traditional conceptions of collateral were only accessible to the very Big Banks).

So, we've done this for 2 main Reasons :

* 1st of all, we see that the key Refinancing Markets for Banks are Blocked.

=> So, we think that (with the December 29, 2011 Measure : See "EuroFora"s relevant NewsReport then), "we have avoided a Major Credit Crush", as there was an Emergency, (particularly with 200 Billions € Bonds coming in the first of theses two months). ...

* 2nd aim of that was to reach the target of Small-Medium Banks, who mainly fund SMEs, responsible for 60% to 70% of Jobs.

+ Some claim that the Money wasn't used because it was largely deposed back to the ECB. But, in fact, it's not the same Banks who took, and those who deposed Money back. So, meanwhile, the Money has circulated.

>>> From many points of view, we (ECB) are Satisfied by the efficiency of that Measure", Draghi concluded in reply to an EuroSceptic British Conservative MEP.
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Last but not least, questioned by MEP Lamberts on the situation of "Private Debts" in EU Countries, Draghi replied that there are All sorts of very Differend Situations, in this regard, going from those where the situations seems "out of control", up to EU "Countries which have the Smallest Private Debt in all the Western World", (i.e. a Record- High Private Lending Capacity), such as, notoriously, Italy and France, etc., which reportedly have among the Best and Strongest Private Savings in the World....

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New ECB President on "Greece" : Review the controversial October 2011 ("PASOK") Economic Plan on how to meet the Financial Deal agreed with the EU
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+ Finally, making just some "General" comments on Greece, in reply to a Question by MEP Chountis, (Left), ECB President started by observing that the October 2011 apraisal (of sustainability of the Greek Debt) had to be reviewed, "in view of the Fact that the Greek Program (which had been presented by the former PASOK Prime Minister Giorgos Papandreou, provoking unprecedented Popular Revolts and worse than expected Recession), both because of Lack of Growth, and of some non-implementation in part, is Not Delivering as expected", and this is part of the current Negotiations with the Private sector".

The controversy seems to focus on the controversial and inefficient, concrete Economic Measures and the practical way with which the G. Papandreoy "PASOK" Government had sought to meet the overall Financial Targets agreed with the EU, and not these targets in themselves, (Comp. the "Cannes Formula" suggested by "EuroFora" since the November 2011 Top meetings on the sidelines of the G20 Summit, and apparently endorsed by French President Sarkozy and the main opposition leader Samaras, etc).

Thus, a Realistic outcome would be an outcome which would guild, with a sufficient degree of realism, a Debt with a GDP Ratio of 120%, by 2020. This is a "realistic" outcome in the case of Greece, Draghi stressed in this regard, but without Time to explain in detail.

However, the overall estimation of ECB's President was that, in principle, a realistic outcome in the case of Greece was "possible". (Comp. "EuroFora"s latest NewsReport from Berlin+).

*Mulhouse/Angelo Marcopolo/- Symbolically speaking in one of the Historic places of Workers' Social Reform movement, as well as of Industry and Science at the European crossroads of Switzerland, France and Germany, just one Day after meeting with Chancellor Merkel in Berlin (See "EuroFora"s NewsReport from Berlin), French President Sarkozy presented a comparatively Solid Balance sheet on concrete Social policy Measures during his first 4 Years of term, and highlighted further needs and Future Objectives, starting by those Urgently needed in order to Safeguard France's and EU's Social Protection Model and basic Values of Human "Solidarity", as well as Economic Efficiency, in an ambitious but also realistic way in the middle of the Global Financial Crisis and the galoping, World-wide Competition, which will need Decisions, both at National and €uroArea or EU level, etc., starting as early as from the End of January 2012, close to the forthcoming EU/€uroarea Brussels' Summit.

 Rarely the most Tragic Human issues, as that of Life or Death, productive Health or sufferings by illness, Handicap, Age, Poverty, etc., came so close, in such a crystal-clear way, with Financial and Political, as well as Human Rights' Strategies, not only on a National but also European level, in the middle of a galoping Globalization, as Facts reveal in the case of French President Sarkozy's speech on "France's solidarity" mainly "to those who are more in need", i.e. People threatened by serious Health Problems and/or extreme Poverty.

Focusing from the outset to the "importance" it has, particularly, "in times of (Global) Crisis", to "give Time and Energy to serve those who are most in need", showing "particularly Humanity in front of Distress and Sufferings", Nicolas Sarkozy reviewed main developments and perspectives throughout a large Horizon made of "Social" issues, spreading from "Family policy", and care for the Poorest People, up to Health care and Workers' Social security funding, etc, stressing his "profound attachment to our Social Protection System", which "ensures Solidarity, contributes to Protect People against Crisis, and allows to those who are hit by Handicap, illness, or Exclusion, not to be rejected by the national Community".
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In this regard, among various concrete Promisses fulfilled, Sarkozy observed, f.ex. :

- "The Success in Family policy", with more "200.000 places for Young Children created in 5 Years", allowing to Mothers and Fathers to pursue their Professional Careers", since "in France, the percentage of working Women is among the Highest in Europe,", while the Country also reached, today, "the most dynamic  Fecondity percentage in Europe", with "an active Population augmenting by + 130.000 persons more each Year" ;

- "The Augmentation of Solidarity, in times of Global Crisis, to those who are most in Need, as, f.ex. Families in precarious situations, Homeless persons, the Poorest, etc", with + 116.000 covered places permanently opened, (an "augmentation of + 25.000 places in 4 Years : some + 30% more"), reaching an unprecedented level in the total Number of covered places, added to a recent "exceptional Plan to Humanize and reNovate" them. The Construction of 130.000 Social Housings each Year since 2007", ("i.e.  Building + 300 % more than 10 Years ago"), despite a Strange Augmentation of Houses' Prices in the private sector in France, regardless of the Crisis and contrary to other Countries, where Prices are lowering, on the contrary, as Sarkozy denounced. + "150.000 Persons were helped to get out of Extreme Poverty by giving them Complementary Revenues via the RSA, (where started to be locally  "experimented" a system of obligatory "Counterpart" in terms of "Remunerated Work of 7 Hours per Week", due to be Generalized this year (2012), "not as a punishment, but as an act of Respect, for the Dignity and the Re-Integration" of the persons concerned, as he said). The Monthly support to Handicaped Adults rose + 25%, i.e. for + 150 € more each Month per person, between 2007 and 2012, as well as "the Minimum for Old Age". The "number of Handicaped Children welcomed in Schools augmented up to unprecedented levels, reaching some 215.000", (i.e. "+ 60% more than back on 2005"). (etc).
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But the most impressive number revealed by the French President is obviously that of the Health Care Public Funds which grew, "each Year, since 2007, even during the recent (Global) Crisis, in average,  almost Twice More (X 200 %) than the Economic Growth !". F.ex. "even in the worst Recession of 2009, with a GDP droping down to -2,5% less, on the contrary, the Health Budget augmented up to +3%", as he noted. This represents an "Augmentation of some + 5 Billions € more, each Year, since 2007", the French President counted.

Such astonishing Facts (often seen during last Decades also in many other Countries, including USA, etc), particularly in the absence of any Major Medical Breakthrough or Discovery radically ameliorating People's Health recently (f.ex. against Cancer, Heart diseases, etc., which remain largely Stagnant), and contrary to the normal Productivity Gains by Innovations and/or Experience in any other organized activities, is a Strange, but real Question Mark almost Worldwide today...

Nevertheless, Cancer continues to be the No 1 Mortality threat, still affecting f.ex. more than 350.000 People each Year in France, so that, after a "2nd Plan Cancer, already launched back on 2009, will come also a 3rd Plan Cancer with some 2 Billions € more, to be invested in Research and in order to alleviate the adverse secondary effects of the treatments to patients, Sarkozy anounced.

Moreover, "Alzheimer" ilness affects Today some 800.000 People in France, where ("even if the word might not be precise in Medical terms") it is curiously spreading almost "like an Epidemics", as he warned, so that in order to fight against this Brain disease, which threatens even to "break up Families, (since "the person affected becomes as a Stranger, losing his Identity and erasing even the Memory of 30, 40 or 50 Years of common Family Life"), "Society must Find Remedies, for which Considerable Means are needed", according to Experts.
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In addition, even if, at the same time, "we never had so many Doctors of Medicine (f.ex. currently 210.000 in France), but, also, never before so many Regions anxious to ask if they will have enough Medical Doctors in their territory !", denounced Sarkozy as a modern Paradox, which reveals a deepening Territorial Inequality de facto.

Particularly to the detriment of certain "Regions or Poor Quarters contrary to the "Equaliy of Acces to Health" that Sarkozy's Draft Speech strongly defended, going even as far as to clearly underline the fact that "this is an issue of Fundamental Importance, in which I will be personally committed", as promissed an initial Draft, which was finally among many ommitted in the final speech, much Shorter, perhaps because of a longer than expected Delay provoked by earlier visits to Mulhouse's Hospital/University).

In consequence, those accepting to work in difficult regions or quarters will be better remunerated, as if they participated in a Public Service Mission, he stressed. In addition, some 230 "Health Houses" were created since 2007 in various regions, and about 500 more are currently demanded.

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    - Nevertheless, "since 1974", (i.e. for more than 37 Years), "we (France) present Budgets in Deficit". But, today, during the present (Global) Crisis, "we must reduce Public Spending", as we have just started to do, wiht "-4 Billions € of Deficit less" this year, (See Merkel and Sarkozy's meeting in Berlin, yesterday, with "EuroFora"s NewsReports from the spot), the French President reminded, (while several EU Countries are still under threat to have their borrowing capacity downgraded by the 3 main Anglo-American Rating Agencies).

    In this regard, there si a "Question raised today both in our Country and in most or all European Countries", according to the French President's initial Draft Speech notes for  the Mulhouse event, precisely at the point where he referred to "some very Important Decisions that we shall have to take towards the End of this Month", (January 2012), "including on the (Future) Funding of our Social Model" :

    >>> When, "for a Salary f.ex. of 2.500 €, the percentage of Employers' Contributions (to the various Social Security schemas) in France is DOUBLE (X 200%) of that which exists at Nearby Germany", as Sarkozy observed, then, "how can we continue to play a Leading Role in the Global Competition, instead of limiting, on the contrary, ourselves (EU Countries) into merely watch those Giants who emerge today, as China, India, Brazil etc. progressively take over our places in the group of Important Countries ?", he wondered, (according also to his Draft notes).

    => Obviously, by "enlarging the Fiscal Basis of our Social Protection system's Funding", as Sarkozy's initial Draft suggested, in a crystal-clear manner, various other Sources of Public Funds could be added to Employers' contributions, so that, according to the concrete way in which a Future, New Funding mecanism might be shaped, this could help both to find enough Money for Sustainability, and in order to combine differend sources allowing "Equality of Access to Health Care", according to the above mentioned Draft (comp. supra), i.e. real "Solidarity", according to the main flagship of Sarkozy's 2012 Mulhouse speech.

    On the contrary, a system exclusively based only on Employers' contributions, would be both opposed to Competitiveness, and exposed to obvious risks of Individualistic Egoism, incompatible with the Official main aim of "Solidarity" in a "Universal" Social Protection system, as that of most EU and particularly France's tradition and values, particularly vis a vis Health care, (which, by the way, is also the only really compatible with the Medical Deontology Historically expressed, until today, Worldwide, by the famous "Hippocrates' Oath", that all Medical practitioners are due to respect and apply)...

    But a new, differend system, could include, among Social Protection's Funding, f.ex., also part or even all the product of the famous "Financial Transactions' Tax", that Sarkozy has repeatedly promissed to establish, according also to a recent EU Commission's proposal which has just been tabled at EU Parliament for January 2012, receiving, already, a crystal-clear support also from German Chancellor Merkel,  yesterday in Berlin. Questioned by Journalists precisely on the destination of these Funds, Sarkozy had exceptionaly preferred to elude any concrete reply, except by pointing at his "End of January" meeting with "Social Partners" in Paris, where he reportedly will discuss the overall Social Protection funding.  ( Comp.  "EuroFora"s NewsReports from Berlin).               

    Significantly, Today, in his Mulhouse's speech on Social Protection, Sarkozy even added, at the conclusion, a last minute reference to "France's will to Tax Financial Transactions", timely reminding   also, the German Chancellor "Mrs Merkel's support", as he said.

    Merkel has pleaded, yesterday in Berlin after her meeting with Sarkozy,  in favor of : - "facing the same Challenges, raised by Globalisation : I.e., from one side, (EU) States need Revenues in order to fullfil their Tasks, provide the necessary services, etc.". But, "from anOther side, we must also be Competitive on Labour Costs, in order to avoid, precisely, Outsourcings", went on to agree also German Chancellor Angie Merkel.

- "It's a Challenge that we (EU) all face, and that's why, during the Next (EU/€uroarea) Summit, (Jan. 30, in Brussels), we want, precisely, to speak about all that, examine the Lessons that we can take from that, and that's why I expect with Interest, a great Interest, the Decisions that France is going to take. As for us, in Germany,  naturally, we take Care so that Indirect Labour Costs remain as Reasonable as possible, in order to avoid, precisely, these OutSourcings and Job losses", Merkel clarified, (according to yesterday's "EuroFora" NewsReport from Berlin).

 

    + All this obviously meets also Sarkozy's New Years' eve message (See relevant "EuroFora"s previous NewsReport, including Statements that have us one of his experienced Counsillors), where he anounced the intention to start establishing legitimateFinancial Sanctions against "Social Dumping" or "Unfair Competition" by Imports from some Foreign Countries which commit Gross Violations of even Elementary Human and/or Social Rights, contray even to the recent G20 SUmmit at Cannes (November 2011), which explicitly called all Countries involved to respect at least some Basic ILO's Rules, (See "EuroFora"s NewsReports from the "G20" Summit and on its aftermath).

    => In other words, a move apparently inspired by a Healthy will to create a Rock-Solid, real-politics' Alliance in practice between Fair Trade and Balanced Budgets' concerns, from the one side, and Social/Human Rights' values, particularly in the crucial Human Health care and Social Protection fields, from the other side.

    Or, in other words, at last, a hope to start putting in real practice from 2012 a good idea that Sarkozy launched as early as since 2009, at nearby Urmatt, (about defending modern and ecologic EU Industry against Environmental and Social Dumping/Unfair competition by some ruthless countries grossly violating even elementary Environmental and/or Social Rules that European businesses are obliged to respect, here).

    But, in fact, it all boils down also to the French President's crystal-clear Electoral Promisses for a Europe with a Cultural and Social Identity, having real Democratic  and Human Rights Values, in a Political dimension close to the People, which were highlighted in his landmark, Historic speeches on Europe, in February and July 2007 in Strasbourg, both before and after the Winning 2007 Elections, (comp. also "EuroFora"s co-founder's question-reply with Sarkozy and relevant Publications we made then).

 

*Berlin/BundesKanzlerAmt/Angelo Marcopolo/- A German Government Spokesman, briefing Journalists waiting for Chancelor Merkel - President Sarkozy's 1st 2012 Berlin summit as "EuroFora", observed that "Growth" started to play an important role now, even in the case of Greece, thus, a fortiori for the entire €urorarea, whose Franco-German and Italian leaders are due to meet these days also with IMF's new Head, Christine Lagarde. 

New Measures for "Growth" and Acceleration of Stability mecanisms decided recently, are, indeed, a "Priority" part of the Franco-German €uroArea motor's larger political Will to "Invent" all necessary "New", "Ambitious"and "Efficient", concrete actions "for Europe's Future", able to advance well beyond the Horizon of the present Global Crisis, as both Sarkozy and Merkel strongly stressed today in Berlin :

 

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On GROWTH :

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 - "We ...need a 2nd Pilar of the Future, i.e. Economic Growth, Employmenté", together with "the Budgetary Consolidation, (and) Financial austerity, which are  (also) Pilars of the Future", stressed from the outset German Chancellor Angie Merkel, speaking after "the 1st time that (she) met, since the beginning of the year", with Sarkozy, together with whom "we made a profound analysis of the situation, as it stands at the beginning of 2012", as she said.

- "We, French and Germans, are very much involved in Growth, thinking (f.ex.) to the Pact EURO PLUS, and (also) very committed on Employment",  Merkel added.

=> In consequence, in fact, "France and Germany have proposed to make a Comparative Study of the various Rules currently applicable in Germany's Labour Market, in order to see which are the Best Practices".

+ "We have (also) asked the (EU) Commission to use the Funds available in Europe for the benefit of Employment, mainly in order to support SMEs, and in order to ameliorate Europe's Innovation force, develop Networks, etc", the German Chancelor highlighted. "We are going to make relevant Proposals to the (E) Commission and to (EU) Council's President", she anounced.

=> "It's with these Combinations between Healthy Finances and Growth Incitations, that we want to express our Commitment in the service of the €uro, of its Stability and equaly of our Will to have a Strong, Competitive Europe", she underlined.

Already, "Everybody is Ready to do whatever necessary on the National level. We have spoken with a lot of Intensity, and I believe in a lot of Success", the German Chancellor concluded.

In fact, "we've just spoken about Employment and Competitiveness. That was the Good Solution...... We must practice Budgetary Consolidation, must make Innovations, must make Competitiveness, we have to push on Employement, Diversify our Industry, etc.", concretely added later-on Merkel. (See infra).
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- "We have the same Analysis", agreed French President Nicolas Sarkozy from the outset :

> "Both the (German) Chancelor, and myself, we are absolutely conscious of the fact that the Priority, Today, is Growth, Employment and the Competitivity of our Continent".  

=> Therefore, "we are going to take Initiatives, in the European framework, on Employment and Training of unemployed people, on the use of EU Funds for Growth and Competitivity, and on Fiscal convergence", Sarkozy confirmed on Merkel's anouncement.

+ Moreover, "we agreed to ask from the ECB to make all its possible for the EFSF to operate more Efficiently". "There is, indeed, something very Important, in what mentioned the (German) Chancellor : - "The Demand made to the ECB to make proposals so that  EFSF works better", the French President noted. "We are conscious of the pressure exerted on some €uroZone Countries the level of Interest Rates today", and "all our work is to bring back Trust, to lower those Interest Rates, so that we can Focus on Growth", he observed.                                                                                                                                                                                                                                                                                         -------------------------

+ ACCELERATING :
--------------------------------

+ Meanwhile, in addition, "we spoke about the European Stabilization Mechanism (ESM) and the possibility to Accelerate its implementation, examining how we could Anticipate on the instalments of its various parts, as another concrete and visible Proof of our Commitment in the service of €uro", the German Chancellor anounced.

For the time being, it's being clarified in Brussels if the ESM could start working "1 Year Earlier" than what had been initially scheduled, i.e. from this Summer, f.ex. by bringing 80 Billions € initially, but all that should be clarified soon, Merkel's spokesman, Seibert, replied to Press questions earlier today.

+ Also, "we are Glad that that negotiations on the Fiscal Pact make Satisfactory Progres", so that "the Golden Rule, and whatever is related to that, could reach an Agreement to be signed before the end of January" 2012.

+ "Moreover, we have also exchanged on the way to Enhance the Efficiency of €uro-Safeguarding Instruments : This concerns, at first, the EFSM, which must not only accompagny Ireland and Portugal, but also, in the future, Greece, thanks to the Flexibility of its Instruments, and must be able to eventually intervene on Primary Markets".That's why "we asked from the ECB to help bring all its know-how in order to enhance EFSM's Efficiency, and we are Glad to see the ECB's Involvement and Commitment in this direction"

-------------------

>>>"The will of the (German) Chancelor, as well as of myself is that EU must learn to Decide Faster and to Implement its Decisions", French President Nicolas Sarkozy stressed from the outset. In particular :

- "First of all, we must keep our Commitments in terms of Deficit Reduction, and, from this point of view, I'm Glad to confirm ..that ... the French State's Budget for 2011, will have an Inferior Deficit for -4 Billions € less than what had been initially scheduled and agreed. I.e., France not only will meet and respect its Commitments, but will certainly make even Better", Sarkozy enthousiastically anounced.

- On €uroArea, "We (France and Germany) agreed to Anticipate the European Stability Mechanism's setting up for July 2012, and we are Ready to Accelerate (also) its Capitalisation", he added.

- "We (also) wish that the InterGovernemental Treaty (on the creation of €uroArea+'s Governance) is taken during the Next Days, that the Negotiations are concluded during the next days, and that the Treaty is signed on the 1st of March", the French President pointed out.
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+"Social" VAT against OutSourcing/Unfair Competition at next EU/€uroarea Summit ?
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But finding New, Efficient, Just and Competitive ways to contribute into Funding Social Security standards, (including, f.ex., by Fighting against Social Dumping and Unfair Competition by some Foreign Countries which blatantly commit Gross Violations even of Elementary Social and Human Rights : See earlier relevant "EuroFora"s NewsAlert), might become one of the main, landmark issues at the forthcoming, January 30 EU/€uroArea Summit :

+ Questioned if it was "Timely to introduce a Social VAT at a moment when UE faces Growth and Employment issues", Sarkozy replied that, even if there is no decision taken yet on that, before the meeting planned with Social Partners (on January 18thin France), nevertheless, it's a fact that "our German Friends have themselves, already some Years earlier, used that arm in order to alleviate Labour Costs and Reduce their Deficit". "Moreover, the issue raised in France is "extremely Important : It's that of OutSourcing", he revealed.

- "France must stop being emptied from its Industrial Blood ! That's why we shall find ways to reduce Labour Costs and allow France to remain a great Land of Production", taking also for "Example, what our German Friends have already done with their Industry", as he said.

+ "In general, we (EU) are facing the same Challenges, raised by Globalisation : I.e., from one side, States need Revenues in order to fullfil their Tasks, provide the necessary services, etc.". But, "from anOther side, we must also be Competitive on Labour Costs, in order to avoid, precisely, Outsourcings", went on to agree also German Chancellor Angie Merkel.

- "It's a Challenge that we (EU) all face, and that's why, during the Next (EU/€uroarea) Summit, we want, precisely, to speak about all that, examine the Lessons that we can take from that, and that's why I expect with Interest, a great Interest, the Decisions that France is going to take. As for us, in Germany,  naturally, we take Care so that Indirect Labour Costs remain as Reasonable as possible, in order to avoid, precisely, these OutSourcings and Job losses", Merkel clarified.

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+ Financial Transactions' Tax, (tabled by EU Commission in EU Parliament + Council from Jan. 2012)

-----------------------------------------------------------------

+ Moreover, speaking to Journalists, including "EuroFora", on his alleged "Precipitation", as someone found, "to advance so Fast .. in setting up a Financial Transactions' Tax, as a matter of Urgency", Sarkozy found "amusing" this change, from the year 2011's complaints to "delay", to the year 2012 question about "going too Fast", and clearly stressed that, both the German Chancelor "Mrs Merkel, and myself, we've always said that we Believe in the Principle of this Tax", and "we've strongly Fought" for it, "at the G20, G8, and EU Summits".

=> Now, EU "Commission endorsed our Idea, and tabled at EU Parliament and in EU Council's Heads of States/Governments, a Draft  Directive which provides a Definition of a Tax on Financial Transactions", so that "there is not any precipitation from me, since it's at the Begininng of January (2012) that  (EU) Parliament and Council will be involved. he simply observed.    

- On the Substance of the issue, Sarkozy stressed that he is "Personally i favor of the Principle of such a Tax", because, "If we are where we are" in the Global Crisis, "it's because of Scandalous and Inadmissible Errors committed by the Financial sector, and it's absolutely Normal that those who contributed into placing us in the situation in which we are since 3 Years, (i.e since the 2009 Global Financial Crisis), also contribute to is settlement".

But, "if we don't give an Example, it won't be done. Therefore, France's idea is to simply apply the (EU) Directive draft, ....convinced that we'll Help trigger a timely Movement inside €urozone". ..."Then , it will be throughout the whole World that Public Opinions in all Countries will say :  - "Why do you exonerate the Financial sector from a Tax that €uroArea had the Wisdom to create ?", the French President explained.

Sarkozy brushed away Questions on where will be affected the Revenue of such a Tax on Financial Transactions, but already gave an Idea, by pointing out that, "we shall have an opportunity to talk about that mainly at the End of January (2012), when I'll present to the People .. the Conclusions of the Summit on the Crisis that I'll hold on January 18" with Socio-Economic Partners in France, so that "Decisions won't be taken before Hearing what have to say all Social Partners", as he promissed. Indeed, this 1/2012 move is due to include also New Solutions about how to Fund Social Security's budget in the Future, without affecting Production's Competitiveness...

    + Merkel's positive stance on the introduction of a Financial Transaction's Tax starting at first by €uroArea Countries is strongly supported also by experienced Finance Minister Schauble,  as Journalists' questions to Goverment Spokesman Seibert reminded earlier today, even if  government coalition partners, Liberals, reportedly seem rather "sceptical" about it, (at least for the moment).
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=> "Invent" "Ambitious", "New"+"Efficient" actions "for Europe's Future"
------------------------------------------------------------------------

= Replying to Questions in an overall Conclusion, the German Chancellor made it clear that "as Political Leaders, we are doing what we think Important for Europe's Future" :

-"That's the reason of our meeting : The Fiscal Pact, the Financial Consolidation, EFSF's efficiency, ESM's anticipation, Growth, the Fight against Unemployment", etc., she reminded. "Because we ate convinced that we have to show that we've understood our Times, and that we are Ready for the Lessons of the Past, and Politically Decided to do anything in order to achieve that. This is the Message that we bring everywhere in the World ", Merkel stressed.

- "Our Ambitious but entirely achievable Aim is to Consolidate the €uro, because it's the Right Choice at the era of Globalization", she reiterated later-on.

- But "things will settle Progressively", so that "we are due to meet anew", since "the one Salvation - Summit does not exist :"

- " There is not any Unique Solution, but" a series of "Battlefields in which we must advance, and I'm glad that we are doing that together with France" a.o. €uroarea key countries, the German Chancellor  concluded positively, with resolution.

-----------------------
+ "Never before in Europe's History, Heads of State/Government hadn't faced such a situation, which incited us to set in motion an (EU/€uroZone) Economic Governance, make efforts with Mrs Merkel for more Convergence, reiterated Calls for more Competitiviness, prove Creativity into finding simple Solutions, so that Markets can anew lend to certain €uroZone States. ..... We believe in €uro, we believe in Europe, we know what are our Responsibilities, and we work to bring the most Efficient Replies,  in the framework of the (EU) Treaties, and also of Democratic Principles,....That's why, "we have to Invent New Concepts, take Decisions, respect our Democratic beliefs. ..

- "But we are sure that there is No Alternative for our Continent than the European Unity, and that we must Save €uro, that we must all get back to work, that we have to reach our targets", strongly stresssed the French President. "The great Trust existing among Germany and France, and the Idea we make of it, is that our two Countries must Help eachother to get €urozone out of this Crisis", Sarkozy energetically concluded.
-------------------------------------------------
+ On 1999-2001 early GREECE's €uro entry in exchange of Turkey's EU bid :

(Comp. earlier, relevant "EuroFora"s NewsReports)
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- Meanwhile, "We spoke also about Greece : The Decisions taken on October (2011) must be implemented, i.e. the Voluntary Restructuration of the "Greek" Debt must advance", (concerning Negotiations with Private Investors), "so that the 2nd Program in favor of Greece, including Restructuration, can be Raidly applied. Otherwise, it won't be possible to Unblock the Next (Financial; i.e. Loan) Package for Greece. But, that's what we want,  (because) we want for Greece to remain inside €uroZone", Merkel warned.      

     
- "We've naturally said that this Restructuration must serve the sustainability of the "Greek" Debt, but Greece must, of course, implement the Commitments it has undertaken vis a vis the Troika. Next week,  I'll have the opportunity to speeak about that with the Greek Prime Minister (Papademos, former EZCB vice-President during 2002-2008), who has committed himself on that, and, Tomorrow, (Tuesday Evening in Berlin); my conversation with IMF's Director General, Mrs Lagarde, will bear, obviously, also on the case of Greece", Merkel revealed.

- "Our analysis on Greece is identical : We had negotiated a PSI. We said that the PSI would be applied only on Greece's (particular) case, exclusively. Now, our Greek Friends must keep their commitments, and, together with the IMF, we shall set in motion what has been scheduled by the Brusssels' Agreement" of October 2011, Sarkozy resumed in fine.
--------------

+ Replying later to Journalists' questions on whether there were already "sufficient" safeguards to avoid a bancruptcy in Greece and/or "any contagion" to other €urozone Countries, German Chancellor Merkel stressed from the outset that "Greece is, and will remain a special case".

- "What we want is to avoid that any Country, whatever, might be obliged to quit €uroArea", replied Merkel.

- "Greece is a special case, (and) when we see the (recent) Data, it's obvious that the participation of the Private sector (into wiping out Debt) was necessary, but not enough to put Greece back on a Good track", observed the German Chancellor.

=> That's why, "are added to that, also the Measures negotiated with  the Troika in Greece. All that must be implemented and translated into real facts",  Merkel added. "It's a Voluntary Restructuring, decided with the Banks", and "I think that we have well prepared"it, "we've taken the necessary decisions for the  Message to be clear" : "Greece must be given a Chance, but is and will remain a special case", the German Chancellor concluded.
---------------
+ Meanwhile,"the situation is complicated", that's why we have to use Imagination", being conscious of the existing tension"; in order to "bring back Trust". "..We have the Duty to be Lucid, without dramatizing". ....We know what are our Responsibilities, and we work to bring the most Efficient Replies,  in the framework of the (EU) Treaties, and also of Democratic Principles, according to which, Mrs Merkel has a mandate for Germany, I have a mandate for France, but we don't have a Mandate for the 15 other €uroZone Countries", (as Greece, which obviously needs a real Change of policy based also on a Democratic movement from inside the Country). That's why, "we have to Invent New Concepts, take Decisions, respect our Democratic beliefs. .. We are not yet at the end of the road, and that's why we continue", added after that question also Sarkozy.

+ "There are (still) Efforts to be made, which should have been made already a long time ago", but were delayed" in the Past, so that "we are working to Fix all that", Sarkozy concluded, (apparently pointing at the serious Responsibilities of several former "Socialist" Governments of the Past, which had, f.ex. notoriously closed their eyes on a growing Debt in Greece, back on 1999-2001, due to an excessive number of counter-productive cushy job holders and/or abusive or corrupted/criminal political lackeys scandalously hired mainly by PASOK's Clientelism and/or Nepotism from the Decade of the 1980ies, in exchange of Turkey's controversial and unpopular EU bid, provoking a Financial "Time-Bomb" which exploded during the 2009 Global, USA-made Financial Crisis.... An obviously posssible issue for 2012, 2013 and/or 2014 French, German , EU a.o. forthcoming Elections)...
 ----------------------------------------

Earlier today, Journalists' questions to German Government Spokesman Seibert about rumours, speculations and Press reports concerning a reportedly lower than expected Growth in Greece, which would oblige either to extend the "Haircut" of voluntary Private investors' loans (known as PSI), and/or add a new EU supplementary aid, were dismissed, until further notice, waiting for a full "Official" report on all verified facts, probably "next week".
------
In fact, it had been both predictable and predicted, indeed, that the methods used by the 2 last, exclusively or predominantly PASOK '("Socialist") Governments in Greece, by heavily Taxing the Productive Businesses and by strictly Reducing Social support to Poor People, in order to continue paying a notoriously excessive number of counter-productive cushy job holders and/or abusive, corrupted or even criminal Political Lackeys scandalously appointed to the State-controlled sector during the last 30 Years (1980-2010) by Clientelist/Nepotist previous, mainly PASOK, Governments, would inevitably aggravate Debt and lead to Recession and Popular Revolts, as it started to happen since last Summer/Autumn 2011.

Only serious, drastic Structural Changes, including to Fire (and/or ask them to pay back part or all of excessive salaries, early retireremnts and other advantages, if they had been abusively perceived from the State for Years or Decades) at least the most useless, and/or counter-productive cushy job holders hired by such Clientelism of PASOK, etc.,  and/or to impose Sanctions at least to the most  Abusive, Corrupted and/or Criminals among such notorious Political Lackeys of PASOK's Nepotism, could have a Real Chance to diminish the Debt, while also letting Production free to create Growth and satisfying Poor and other People's thirst for Justice with a necessary Anti-Corruption Purge. (See relevant "EuroFora"s analysis and Facts, since +12/2009).

Recently, it seems that some among IMF's a.o. Experts might have started to realize at least part of what should and could have been done in this particular case of Greece, and reportedly raised questions about laying off some among those PASOK-hired, counter-productive cushy-job holders and/or abusive, corrupted and/or criminal political lackeys, but reportedly faced silence, Oppositions, Refusal and/or Diversion manoeuvers, etc.  As, f.ex., that scandalous PASOK proposal to make Poor People starve and Productive Businesses close down, in order just to pay ...20 Years more of "Early Retirement" lazy Holidays to such  cushy-job holders and/or Political Lackeys, in addition to some 30 Years of heavy Debt-provoking Salaries and various other, in fact, undue Financial advantages (sometimes, even ... "15th Salary" !) already paid throughout the 1980-2010 period which notoriously provoked that huge Debt, (scandalousmy Hidden during Greece's Earlier than normal entry into €uroZone, even without doing previously necessary Reforms, in exchange of Turkey's controversial and unpopular EU bid, back on 1999-2001, exploited politicaly then by various former "Socialist" Governments in several EU Countries in the Past.

However, IMF and its EU Partners have approached, but, apparently, not reached yet the point where Economic Efficiency would meet elementary Social Justice : F.ex. thanks to a massive Anti-Corruption campaign, able to win the support of a dynamic Popular movement, notoriously fed up by 30 Years of Nepotism, Abuses, Discrimination, Corruption and even Crimes (1980-2010), that only an Hungarian-like or Argentinian-like opening of Legal possibilities of Purge without bureaucratic Time-Deadlines (which may cover up scandalous impunity of corrupted and in some cases even dangerous criminals).

Indeed, even if IMF's new Head, the experienced Christine Lagarde, was just anounced Today, by Merkel's Spokesman, to visit Berlin for meetings with the German Chancelor, tomorrow evening, as well as with the Italian Prime Minister Monti, probably followed also by an equivalent meeting with French President Sarkozy, nevertheless, a tight-liped Seibert avoided to reply to any question about the concrete issues which would be discussed by Lagarde, at the eve of IMF's Experts' new, crucial visit to Greece next week...
----------------
However, the fact that alleged problems with USA representatives of Private Investors seem to emerge in Greece just at the eve of an exceptionally crucial UNO  Top Level meeting with its Secretary General Ban Ki Moon in New York on Cyprus' issue, of well known significance for Turkey's controversal and unpopular EU bid, (a matter of notorious Geo-Political controversy between real pro-Europeans and Globalists), threatening to provoke also an eventually abusive lowering of France's a.o. EU Countries' rating by Anglo-American Agencies, (etc), seems to indicate the probable presence, inside the overall equation, of also various other, non-economic, but GeoPolitical factors ...