

EU's Almunia to EuroFora on Eco Stimulus plans, before London G-Summit : Keep the Rules or Opt-out !

EU Commissioner on Economy and Finance, Joachin Almunia, replying to 3 "EuroFora" questions in Strasbourg before next week's London Global Summit, made it clear that all EU Member States must, more or less, respect EU Rules on the Monetary Stability Pact when they draft their Economic Stimulus policies, unless they want to "Opt-out" of EuroZone, as the UK has already done...
Several EU Countries must correct imbalances in rather strict Time deadlines, and this is not an "impossible task", but "a very possible and attainable task", as Almunia told us. But it's only the UK which could practically ignore EU's calls, "because of the Opt-out they have"....
The issue got a larger, EU-wide and even Global Political dimension, one day later at EU Parliament, when USA's new President, Barack Obama's call on Europe to augment Spending against the Economic Crisis at the eve of G-20 Summit, was considered by some EU officials, (as EU chair, Czech Prime Minister Topolanek or EU Commission's President Baroso, etc), as partly deviant to Euro-Zone rules of the EU, whose priority now seems to be a new, multi-polar agreement on the Regulation of World's Financial Markets, to avoid similar abuses and crisis in the Future.
Even if he appeared as partly sparing for the moment some of EU's driving forces, as France or the UK, Spain, etc, who got more Time than others, Almunia stressed that, as a matter of principle, all EU Member States should comply with the same rules, applied according to the particular situation of each one of them.
The results of EU Commission''s check on 5 EU Countries : France, the UK, Spain, Greece, Ireland and Cyprus, gave, at first, an impression to some that a "difference" was made "between EU Countries", as an Italian journalist said.
F.ex. paradoxically, Greece seems to have, in comparison, some better indicators than other EU Countries checked this week :
* Deficit in Greece, after reaching 3,7% of GDP in 2007, is estimated at 3,7% in 2008, over 3% in 2009, and exceeding 4% in 2010, according to EU Commission's forecast, (while the Greek Government tabled on just 3,2%). Only Cyprus does better, with a lower deficit than the threshhold of 3%.
France comes next, whose deficit aims for 2009 and 2010 were revised upwards at 5,6% and 5,2%. In Spain, it's expected to arrive at 6,2% in 2009 and 5,7% in 2010.
But in the UK, Deficit estimates mount at ..9,5% in 2009/10. In Ireland, the deficit already reached 6,3% in 2008, and is expected to rise up to 11% in 2009, and 13% in 2010 !
(../..)
* On Growth, Greece "has a higher percentage ..than the EU average", observes EU Commission : "Real GDP Growth reached +4% in 2007, before decelerating at +3% in 2008", the year of the Global Crisis, revealing that "Greece enjoyed a Good Economic period in 2007 and 2008".
In the other 5 EU Countries, Growth figures are less good, for the moment : Cyprus, after a +1% Growth in 2008, may fall in recession in 2009 with -1%. In Spain, after a + 1,2% GDP Growth in 2008, estimates give a - 2% contraction in 2009. In France, after a +2,2% GDP Growth in 2007, the 2008 estimate was +0,7%. But Ireland's GDP decreased - 2% since 2008. And for the UK, EU Commission forecasts a "sharp contraction" all over 2008-2010.
- Despite that, Almunia asked from Greece "to bring the deficit down from 3%" as soon as in 2010, and wants to see efficient measures on October ! And Cyprus is asked to "stop" its Stimulus plan "next year".
On the contrary, from Spain and France he asks results only in 2012, i.e. 2 Years later, and from Ireland in 2013, i.e. 3 Years later. As for the UK, Almunia replied to "EuroFora"'s question by asking measures only .."when the revival of the economy will allow"...
This difference made some Journalists (from Italy, France, etc) suspect some kind of "differenciation" between EU Countries :
- "This gives the impression that there might be a Difference inside the EU between some Big Countries, which get more Time, and some Small Countries, which are asked to comply with Stricter rules", criticized an Italian Journalist.
- "In Greece, the estimated Deficit is Lower then in the other countries, while Growth also continues". On the contrary, "in Ireland, the Deficit is much Higher, and is due to worsen, because there are more pesimistic forecasts on Growth, with a faster and larger Downfall of production", Almunia replied.
"In Spain and France, the deficits are between Greece's and Ireland's", while revival is still awaited. Thus, "we (EU Commission) dont' ask the same things" in the other 3 countries as in Greece, which "can move faster".
But, in fact, the real cause of this otherwise astonishing difference, seems to be an "old problem of Debt, which exists since Many Years from the Past" (i.e. since previous governments, before 2004), as "EuroFora" asked Almunia, who did not deny : The problem in Greece clearly is that it inherited from the past a gross public Debt which "remained at 98,4% of GDP in 2007", diminished a bit in 2008 (94,6%), but is estimated to grow at 96%in 2009 and 98%in 2010, according to EU Commission's data.
On the contrary, in Ireland the Debt was only 40,6% of GDP in 2008, and wouldn't breach the 60% reference before 2010. In Spain it's 40,3% in 2008, and 53% for 2010. In the UK it's expected to rise to 70% in 2013/14. In France it's estimated at 67,1% in 2008 and 73,9 in 2009, 77,5% in 2010.
- "Why this Acceleration in Greece ? It's not only because it has less deficit, and not only because it has a Positive Growth percentage, and, thus, can act earlier, with accessible measures". "But also because there are 2 Facts on which is needed the utmost Care, during this period of (Global Crisis) : An External Imbalance, with a big and persisting Current Accounts' Deficit, and also a very big level of Debt, compared to its GDP", Almunia added
However, the EU Commissioner looked optimist in reply to an "EuroFora"'s question if he believed that "such an old problem, which exists since many years, could be settled in 1 year" :
- "It's not an impossible task. It's a very possible and attainable task", replied Almunia to our question, reminding that "in a previous occasion", when "Greece had received a recommendation for the correction of an excessive deficit, ..it was corrected", between 2005 and 2007. .And "the Greek Government is convinced that, for their own interest, not only because they want to comply with the EU framework, but for the interest of the Greek Economy, this correction of the deficit is warrant".
- "In the case of Cyprus, we (EU Commission) consider that the Fiscal Stimulus should not continue Next Year (in 2010)", he confirmed. Because "we think that the figures on the Economy of Cyprus from 2009 to 2012, ..can become a little bit worse, given the evolution of the (Global) economic Environment". And "Cyprus' Pulic Finances, over the Long term, have problems of Sustainability : We have analyzed that in the Past, and the situation has not changed from the Structural point of view". "At the same time, as Greece, it has a Current Account Deficit, and in this moment, in this (Global) Crisis, the persistence of a current accounts deficit is an important macroeconomic imbalance, that requires the contribution of adequate fiscal policy to be corrected".
In other words, in itself, nothing new...
In contrast, UK's particular situation among the 5 EU Countries checked, revealed more clearly the main issue :
The EU Commissioner was asked by "EuroFora" to explain the "strange example given to other Countries" by the UK, where, despite some negative figures (see above), even if the measures earlier advised by the EU were "not taken", and a Time "Deadline wasn't met", EU Commission does nothing else than simply .. issue a new recomendation, advising again to take more such measures and ..postponing the Time Deadline for later.
After insinuating that "the UK case", might not be the right, but a "bad example" for other EU Countries, Almunia admitted that he asks from London to simply "correct the imbalances..... as soon as possible, once the recovery will come back" !
But he explained "the repetition of recommendations in the case of the UK", by observing that "we (EU) cannot go beyond this step, because of the Opt-Out they have"....
However, it's the "own interest of the British Economy to correct" that, he concluded.

Indeed, some MEPs teased, the same day, British Prime Minister Gordon Brown, (who visited Strasbourg to discuss the preparation of the forthcoming Global London Summit), for keeping too many "Opt-Outs" from EU Rules, as fex. the Leader of "Greens/ARE" Group, Italian MEP Monica Frassoni. Going even further British Liberal MEP Graham Watson, leader of the "Liberal/Democratic" Group, launched a call for UK's entry to the EuroZone !..
More pragmatic, French President Nicolas Sarkozy, has already declared that it seems always possile and desirable to forge a special status for the UK to get together with EuroZone. Thus, he reminded the useful, even if partial, participation of Gordon Brown to the decisions taken by the 1st, Historic EuroZone's Heads of State and Government Summit, in Paris, on October 12, 2008, which was the first to be succesful in starting to make Stock Markets move in a positive direction.
Main Menu
Home Press Deontology/Ethics 2009 Innovation Year EU endorses EuroFora's idea Multi-Lingual FORUM Subscribers/Donors FAQs Advanced search EuroFora supports Seabird newsitems In Brief European Headquarters' MAPs CoE Journalists Protection PlatformBRIEF NEWS
- 00:00 - 02.06.2021
- 00:00 - 18.10.2020
- 00:00 - 19.06.2020
- 00:00 - 18.05.2020
- 00:00 - 20.04.2020
- 00:00 - 02.02.2020
- 00:00 - 09.12.2019
- 00:00 - 27.11.2019
- 00:00 - 16.11.2019
Popular
- Yes, we could have prevented Ferguson riots says World Democracy Forum's Young American NGO to ERFRA
- Spanish People Elect CenterRIGHT Majority with 1st Party and Total of 178 MPs (6 More than the Left)
- Pflimlin's vision
- The European Athletic "Dream Team", after Barcelona 2010 Sport Championship Results
- Source Conseil d'Europe à ERFRA: Debatre Liberté d'Opposants à Loi livrant Mariage+Enfants à Homos ?
- Head of BioEthics InterGroup, MEP Peter Liese : "Embryonic stem cell research reaching its END" !?
- Spain: Jailed Turkish Terror suspect with Explosive,Drones,Chechen accomplices stirs Merah+ Burgas ?
- UN Head Ban Ki Moon at CoE World Democracy Forum : - "Listen to the People !"
Latest News
- EUOmbudsmen Conference 2022: Digital Gaps affect People's Trust threaten EF Project on EU Future ?
- French Election : Black Out on Virus, but Obligation for Fake 'Vaccines" Challenged
- Both French Presidential Candidates point at "Humanism" in crucial times...
- France : Zemmour = Outsider may become Game Changer in Presidential + Parliamentary Elections 2022
- PACE President Cox skips Turkey Worst (Occupation) case compared to Russia (DeMilitarisation) query
Statistics
Posetioci: 54965596Archive
Login Form
Other Menu

EU Rapporteur on Enlargment Strategy, maistream German MEP Elmar Brok, speaking to "EuroFora", welcomed the proposal made earlier this week by French President Nicolas Sarkozy for the EU to"start Now Talks with Turkey to create a common Economic and Security area", instead of full Accession, at a period when Ankara looks more and more unfit and/or unwilling to respect EU conditions.
- "For Europe to have strong Political will, it must stop dilutiing itself in an endless Enlargement. It must have borders...Diversities enrich, on the condition that they don't undermine European Cohesion, and don't weaken EU Unity", Sarkozy stressed.
- "Countries like Turkey share a part of common destiny with Europe, with which they have a vocation to build a Privileged Relation, to be closely associated, but not to become Member of the EU" : "Noone respects his friends by telling them lies. Noone respects his friends by making them promises that will be never kept", he added.
That's why "we'd better start, from now, negotiating with Turkey to create a common Economic and Security area", Sarkozy proposed.
Significantly, the French President was repeatedly and largely applauded by EU citizens, 3 times, when he made the Turkey point, (strategically placed between Europe's "Political Will" and its cultural heritage, historically open to mutually enriching dialogue with all the World, but never diluted).
- "We could propose such a great ambition also to Russia, which must not be percieved as an Adversary of Europe, but as a Partner. Thus, we'd create a wide area, of more than 800 Million inhabitants, sharing the same Security, the same Prosperity", he concluded.

Sarkozy's move was anounced at the eve of a Franco-German Top meeting with Chancellor Angie Merkel in Berlin on Sunday, to jointly launch the EU Elections campain, after an EU Summit at nearby Prague, to launch a new kind of relations, called "Eastern Partnership", with neighboring countries such as Urkaine, Belarus, Moldova, Georgia, Armenia, Azerbaidjan, etc, (to which Russia, reportedly, is not - and does not want to be - included).
As for Ukraine, which has already expressed her wish to join the EU in future, "Kiev will have a special place, and a very important role to play", replied earlier this week in Strasbourg, to an "EuroFora" question EU Chairman in office , Czech vice-Prime Minister Alexander Vodra.
- "This direction is more Realistic for Turkey than Accession negotiations", reacted immediately EU Parliament's Rapporteur for Enlargment Strategy, mainstream German MEP Elmar Brok, commenting Sarkozy's idea for "EuroFora"
Particularly "as far as it concerns the respect of EU Rules by both sides", he added, hinting at Turkey's now obvious inability and/or unwillingness to abide with EU Acquis, EU Commitments (fex. on Cyprus, etc), and European Democracy/Human Rights rules. (Comp. infra).
Brok added that, in his view, a similar proposal might be made also to Ukraine and other neighbouring Countries, regardless if they have, or not, a "European vocation". This would not necessarily mean that there couldn't be any accession prospects at all." for all the countries that might be included in this area, according to Brok. But it's preferable, particularly for Turkey, "because it's a more Realistic approach than full Membership".
On this point, Sarkozy's proposal, (which he'll share with German Chancellor Merkel), seems more crystal-clear.

- "Turkey does not fullfil EU Criteria, and will never fullfil EU Criteria" on Human Rights, Democracy and Rule of Law. "Some have been lying to Ankara, but we must tell the Truth, and have honest and close relations with her", said meanwhile to "EuroFora" on the same issue also the President of EU Parliament's largest Group of MEPs (ChristianDemocrats/EPP), Joseph Daul.
------------------------------
"Hot" Debate at EU Parliament reveals CHANGE of mood towards "Suspension" of EU - Tukey talks.
------------------------------
Earlier this week, many MEPs, and even some of those who were previously in favor of Turkey's controversial EU bid, strongly criticized the persistance and even aggravation of serious Human Rights violations in the country, that ECHR continues to "unanimously" condemn ":
- "After winning a big victory in the latest Local Elections, the pro-Kurdish party DTP almost doubled its Elected Mayors from 52 to 98", but afterwards "more than 400 politicians were thrown to Prison and prosecuted" by the Turkish Authorities, denounced on behalf of the ChristianDemocrat/EPP Group, Belgian MEP Frieda Brepoels.
At the same time, "more than 1.500 Children are closed in Turkish Prisons", she added. "What will the EU Commission do" against these facts ?
- "Turkey appears to be at greater Distance away from Copenhagen Criteria after 4 Years of accession Negotiations, than when they started !", denounced on behalf of the Liberal Group, German MEP Alexander Lambsdorf.
"On the central issue of Press Freedom, Critical Journalists face obstacles for their accreditation, others are prosecuted, condemned, fined and/or jailed, Media blocked or closed", he denounced.
- "EU Made 2 grave Mistakes with Turkey : To start accession negotiations, and to continue them", despite everything, criticized Dutch MEP Bastian Belder, on behalf of the Ind/Dem group.
Polls
SMF Recent Topics SA
- Record Hospitalisati... (0) Breadman
- How Many Infected by... (1) Thunderbird
- Real Cause for Europ... (0) Breadman
- Interesting Australi... (0) Aurora
- Plus de mRNA Faux-&q... (0) Aurora
- EU: Lukashenko as E... (0) WKalina
- Why NATO in Ukraine,... (0) Geopol
- Afghanistan's key : ... (0) Thunderbird
- Anti-Pass Demonstrat... (0) Aurora
- Veran - Fioraso : Mê... (1) JohnsonE