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Home arrow newsitems arrow €uroarea eco-pol. Integration decided collectively=> EU asks to free Global Growth potential via G20

€uroarea eco-pol. Integration decided collectively=> EU asks to free Global Growth potential via G20

Written by ACM
Thursday, 27 October 2011

€uroarea's Integration, in economic Governance and at a political, Heads of State/Government level, initialy proposed by French President Sarkozy and German Chancellor Merkel since August 2011, (see relevant "EuroFora"s NewsReport from Elysee palace), was collectively decided this last week of October 2011 by the latest €uroarea's Summits in Brussels and warmly endorsed by a 2/3 large Majority of EU Parliament's leaders today in Strasbourg, opening, at the same time, an emerging EU move towards creating the conditions which could liberate Growth potential Worldwide, including Development, via the forthcoming G20 Summit at the beginning of November in Cannes.

Meanwhile, EU also decided several New Measures to definitively deal with Sovereign Debt issues of the Past in a few countries, including innovative ways to multiply the European Stablity Fund up to 400% until 1.400 Billions $, stricter €uroarea Budgets' Supervision, etc, as well as an overall deal on the specific, Financial-Political issue affecting Greece in fact since 1980-2010, (particularly after the 1999-2000 deal for Freece's early entry in €uroarea in axchange of Turkey's controversial EU bid : See previous, reelvant "EuroFora"s publications), with a restructuration "haircut" of 50% in agreement with Banks, which were given guarantees and recapitalisation support, allowing a deeper review of concrete details on Structural Reforms and ways to find larger Political support before the end of 2011.

At the same time that EU's political leaders fixed as target to boost G-20 action for adequate Changes in the Global Monetary system, against extreme volatility of Oil and Food products (particularly by speculation on financial derivatives, etc), inside a wider move aiming to set at least some Basic Rules on Global Financial transactions, including a Tax, so that they could focus less on speculation and more on Real Economy's development, to meet the needs dramatically highlighted by Lower Growth prospects Worldwide than previously expected, and by a growing Global Popular Movement, from Tunisia, Syria, Madrid and Athens up to Chicago, California, Boston and N.Y.'s Wall Street, (comp. "EuroFora"s NewsReport on the preparatory G20 Ministerial Summit in Paris, October 15).
(A) On deepening €uroarea :
Stressing from the outset that "€uro is at the Core of our European project", not only for Economic and Financial "Stability and Prosperity", but also for "Peace",  the Official Communiqué of the 17 Heads of State/Government clearly anounced their "unawavering Determination .... to take all the necessary steps towards a Deeper Economic Union", (also in order to "improve Competitiveness, thereby achieving further Convergence of policies to promote Growth and Employment").

The Collective Agreement included Sarkozy and Merkel's historic proposal to "regularly" hold €uroArea 17's Heads of State/Government Summits, "at least twice" a year, in addition to EU 27's traditional Summits, i.e. accepting an inevitably Political (and, therefore, unpredictable) dimension to the €-move.. "Additional" "€uro Summits" "can be called ... if necessary". All of them "will define Strategic orientations for the conduct of economic policies and for improved Competitiveness and increased Convergence in the €uro area". Before mid-2012 €uroArea leaders will decide whether they will have a "Full-time President based in Brussels", or if he/she should be elected among the 17 Heads of State/Government of €uroarea Member Countries.At any case, the Presidents of €uroSummit, EU Commission and €uroGroup "will meet regularly, at least once a Month".  

Already, €uroarea decided to bring soon into play "a significant strengthening of economic and fiscal Coordination and Surveillance", putting in place "a set of
very specific Measures, going beyond and above the recently adopted package on economic governance", (See "EuroFora"s June and July 2011 relevant NewsReports), in addition to other "10 Measures to improve the Governance of the Euro area". They also asked Van Rompuy, Barroso and Juncker, (Presidents of EU Council, EU Commission and €uroGroup, respectively), "to identify possible steps to strengthen the economic union, including" by "limited Treaty changes", on which they expect 2 Reports, between December 2011 - March 2012, on "Orientations" and their "Implementation". .

Among "additional Measures"; "building on the .. European Semester and the EuroPlus Pact, just adopted", are also the "adoption, by each ... Member State" of the "Golden Rule" (aka : "Debt Brake") "on Balanced Budget, .. preferably at Constitutional level or equivalent, by the end of 2012", (See "EuroFora"s August 16 NewsReport from the Franco-German Summit), the "commitment to stick to EU Commission's Recommendations on the conduct of Economic and Budgetary Policies" of each Member State, (which can be issued even "before the adoption of National Draft Budgets" concerning "States in excessive Deficit procedure", as Van Rompuy noted in EU Parliament in Strasbourg), etc.


    After adequate "Political Decisions" were taken, marking a "Breakthrough" due to be completed by Legal/Technical follow-up, now, "the Tough Task Ahead" is to "Monitor Implementation" by Member States, in order to really achieve the desired result of "Deepening" €uroarea, concluded Van Rompuy, after debating with MEPs in EU Parliament's plenary in Strasbourg.
    -  "For more than a Year", (3/2010-10/2011) in addition to "taking Emergency Action", we have "also (been) putting together; step by step, a New Economic Governance", he observed earlier.

    + But, "these Last Months" there was an "Acceleration", because of "Market Speculation" and "growing Volatility" since July, given also  that "Global Economic Growth is Slowing Dramatically, not only to Europe but also in the USA and in some Emerging Countries"; he warned. That's why, "Stimulating Growth is an Essential part of the package", since, "in the end, Sustaind Economic Growth can bring back Confidence, create Jobs and absorb Debts", Van Rompuy pointed out.

    "Monetary policy alone is not enough" : "We cannot have a Common Currency, (and) Monetary policy", but "leave everything else to the States" ; On the contrary, we (€uroarea) have to go Further", he stressed, "while also keeping the Integrity of the Single Market between our 27 States of the EU, so that we could have "the 2 Configurations".


    British Prime Minister David Cameron, speaking earlier this week at the House of Commons, highlighted in substance the fact that, by sticking to the 27 Countries' strong Single Market and trying to freeze EU's  Budgets, (according to his earlier, joint Letter, co-signed also by German Chancelor Merkel and French President Sarkozy), while €uroarea's 17 Member Countries are now Moving towards Deeper Integration, a New GeoPolitical reality may emerge soon in Europe, which might satisfy both EU-sceptics and supporters of a progressive or faster confederation, even federation at another horizon...


    French President Sarkozy, 2011 Chairman of G20-G8, expressed in Brussels his satisfaction for the fact that "extremely heavy decisions, that nobody would have imagined before 1,5 Year", were taken by an €uroarea Summit of Heads of State/Government, a body who "didn't even exist 2 Years earlier", according to the wish of those (including France) who were always in favor of the creation of an "Economic Government" for €urozone.

    + Sarkozy also stressed, in an exceptional TV interview in Paris later tonight, that France and Germany intend to spearhead, at EU's core, a strong and growing €uroarea's integration developing an innovative and competitive economy able to play an important role at a Global level.


    Meanwhile, the French President made it clear, replying to Journalists' questions, that €uroarea's integration "will need also other steps, but, next time, they won't have to be necessarily Institutional", unlike the present ones. They will rather be "based on Fiscal Convergence, Economic Competitiveness' convergence, and, in general "in Policy content", he highlighted, after qualifying the "Decisions taken" this week as "Historic".
    + This is in addition to the present French and German leaders' care for an €uroarea action in order to find urgent practical solutions, for Countries as Greece, etc., in which there are "sufferings, demonstrations and social problems", "raising also Democratic problems, since we are asked to take decisions in favor of countries for which we weren't elected", as he noted in reply to another, critical question, denouncing the fact that "there wasn't Mrs Merkel or myself among those who had asked, in the Past, to "Soften" the Stability Pact", so that "they could push inside certain Countries which were Not Ready yet for €uroZone and droped (financial) discipline", so that "they didn't meet then the required Conditions", mainly because of "choices that they had made to get indebted", leaving also "Debts accumulate since 30 Years", when "others were responsible", (as Sarkozy rightfuly criticized for the "Socialist" former Governments in Germany, France, the UK and Italy (as Schroeder;, Jospin, Blair, Alema, etc), including in EU Commission (with Prodi as former Head), during the crucial 1999-2001 era, when they notoriously had closed their eyes, f.ex. on Greece's need to make structural Reforms before entering €urozone, in exchange of Turkey's controversial and unpopular EU bid, despite the fact that it didn't, no more, meet EU's conditions on Human Rights, Democracy and Rule of Law respect, nor even European identity, History, Geography and Culture, etc. : See previous, relevant "EuroFora"s publications on this point. A fact that, progressively, also other key EU Politicians start to denounce, including, f.ex. the Historic long-time former German Chancellor, and "father" of EU's ReUnification, Helmut Kohl, recently).

- "That's another reason for which €urozone must prepare also the Protection of all other Countries, since things are interlinked" in practice, "and we want to learn how to Work Better and otherwise in the Future.... That's something New, without any precedent, a new situation inside a Monetary zone as €uroarea, so that no Expert could tell us which is the 100% safe solution. But we have the Responsibility not only to act with Courage, but also to measure well the consequences for Tomorrow", so that "we must Advance step by step, finding out what could be the Next Stage", Sarkozy concluded.

- "This is not a "Big Bang", but an Important Package on the road towards Stability and Union", which has "a lot of Substance" and "a Multi-Dimensional" aspecy, added German Chancellor Merkel in her Press Conference in Brussels.
(B) => on G 20 :


The  G-20 Chairman, strongly supported by German Chancellor Merkel, as well as by a large Majority in €urozone and the whole EU, went on to confirm  Europe's call to the forthcoming G-20 Heads of State/Government Summit at Cannes (France, 3-4 November 2011), for the establishment of a Financial Transactions' Tax, Worldwide, while it has become today obvious that "the Financial sector must be Regulated, and invited to undertake its own Responsibilities, since the whole World is there where it is now, (i.e. with Low Growth, after a Global Economic and Financial Crisis), naturally because there were too many Debts, but also because there was a (Global) Financial System which didn't obey to any Rule", as Sarkozy denounced, (while Popular Demonstrations are recently mushrooming throughout all over the World, from the USa also to the EU, etc.

- "We must definitively turn the page of that kind of World of the Past, (mainly) by opposing a certain number of Regulations, able to prevent the same causes provoke the same results", the 2011 G-20 Chairman warned, calling all involved to drop criticising eachother and better "focus on finding Solutions" to problems, as he said.

-"This is really a Moral, Political and Economic duty", stressed Sarkozy, "absolutely supported" by Merkel.


- "G 20 Countries are due to take Crucial Decisions", in "a great Rendez-vous", stressed earlier Sarkozy, while "confirming France's involvement in favor of (Global) Development", in a landmark speech in Paris.

- "We all know Today, as the Global Crisis reminds us, that there is a Community of Fate over Global balances", so that "All Countries are now concerned by the issue of Development, regardless if they receive or provide some Aide, whether they've just got out of Pauverty, or recently threatened by it : All must present their proposals in order to build a Stable, Sustainable and prosper Model",  he pointed out.

- Also because "the G 20 must become an incarnation of the General Interest", with "Multilateralism", "Transparency",and  "Openess to Civil Society", said from the outset the French President, who is also due to meet with NGO's representatives personally in Paris at the eve of the Cannes' G 20 Summit.

- "G 20 brought Responses to the Global Economic Crisis of 2008 and 2009", while "now we face a Debt Crisis among Advanced (developed) Countries", but "we must not forget also to look at the Future, for Sustainable Development", since, "while acting together to respond to Crisis, we must also prepare profound Reforms able to ensure the sustainable Growth that we need in the Futture, .. by rectifying the Global Economy's misfunctionings, and by setting up New Motors for Growth", the 2011 G 20 Chairman dynamicaly outlined.

- Because, today, "there is no more a Sustainable Future Growth for the Global Economy, without a shared Development", Sarkozy strongly underlined.

- "For more than 50 Years the Public Opinion points to scandalous Inequalities throughout the Globe, but Today things evolved : The old Distinction between North and South is no more pertinent", and "we must have a New View on evolving Continents such as Asia, Latin American, but mainly Africa", in "a New World where imbalances changed locations.. Thus, Development is No more a balance to be found between two Groups of Countries, but a Collective Involvement of All for the General Interest", he reiterated.

=> Because "the Aid to Developing Countries becomes a Major element for Global Economy's stimulation and relaunch: The Global Revival comes through an Augmentation of the Consumption and of Investment in Developing Countries, including, even, of low revenue". By boosting Growth in Poor Countries, by Stimulating domestic Demand, reducng Inequalities, etc; we can give to Developing Countries a Momentum able to pull upwards the enttire Global Economy", Sarkozy innovated ambitiously

- "Food Security, Infrastructures, Social Protection and the hard Question of how to Fund Development", are the "4 main areas" where the French 2011 G20 Presidency wants to "prepare concrete Projects and Priority Actions", he noted, "because we want a New Face of Globalisation, which will be no more limited to immediate gain, as that which brought the World near a Catastrophe, but a Nexw Globalisation, able to respond to Global Challenges and anticipate what is at stake in the Futiure".


Indeed, "EU, united all together, will push at the forthcoming G 20 Summit for an ambitious Action Plan able to redress what is hindering the potential of Growth at Global level, stressed today EU Commission's President Barroso, speaking at EU Parliament in Strasbourg.

- "Europe strives to lead the Global Crisis Response at the G20", and "it"s the 1st constituency in the G20 to have proposed a Financial Transactions Tax, which ..can be used to face Global Challenges, such as to Fight Poverty, etc, he added, among others.

- "The Protest Movements,; we have witnessed in recent weeks, from  Madrid to Manhattan, show that this is the kind of action People expect from their Leaders", (including, fex; to ensure that Financial sector and Banks also contribute to Society", Barroso concluded, applauded by several MEPs.



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Sarkozy stimulated by Irish "No" challenge : - "It's a call to change and build Europe otherwise. Not later, but now. It won't be easy, but it's fascinating !"


* Paris, Elysee, June 14, 2008.

Forthcoming EU Chairman, French President Nikolas Sarkozy, created a surprise by declaring that the challenge of the Irish "No" to the EU Treaty, stimulates his belief that we must immediately change the way Europe is built.

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