Sarkozy-Merkel proposals to boost €urozone: Monthly Summits, Accelerated Tools, Sanctions/Rules

   

*Paris-Elysee palace/Franco-German Summit/Angelo Marcopolo/- Strengthen irreversibly €urozone, in order to make it immune in the Future from any Errors committed by others in the Past, with Fast and Strong Moves, in the run up to the forthcoming  Friday's EU Brussels' Summit, to considerably Deepen and Upgrade its Integration, is the main aim of the New Franco-German proposals "Open" to all EU Countries,  which create Monthly €urozone Heads of State/Governments Summits initially focused on Competitiveness and Growth ;  Accelerate and Facilitate the use of the European Financial Stability Fund (in possible cooperation with the IMF recently highlighted also by the G20 Cannes' Summit) ;  stick to the recent Strasbourg Trilateral Franco-Germano-Italian Summit's compromise on ECB's role, taken togethetr with new Italian Prime Minister, experienced long-time EU Commissioner Monti ; while also singling out the "particular" case of Errors committed on Greece back on 1998-2002, (where excessive Debt had been provoked by a controversial Politio-Financial deal involving Turkey's unpopular EU bid in exchange of Greece's earlier than normal €urozone entry even before making necessary Reforms) ; but, most of all, by launching an important EU Treaty Modification in order to ensure that any such "Errors of the Past" (i.e. during the 1998-2003 period of "Socialist" mainly former EU Governments), will never be committed again, thanks to the adoption of a "Golden Rule" (or "Debt Brake")  leading to Balanced Budgets in all €urozone Countries, and "Automatic Sanctions", supervised by EU's Court of Justice as well as by National Constitutional Courts, against any Member Country which might eventually violate EU Stability and Growth Pact's rules, etc.

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- "We worked almost all these days long, as well as our collaborators", observed Frenh President Sarkozy from the outset, after emerging with German Chancellor Angie Merkel out of the blue with an unusual, more than 1,5 hour delay, to the earlier scheduled Press Conference, followed by a busy but excited-looking Elysee palace's Secretary General, Xavier Musca, his experienced Economic counsellor, as well as the irremplacveable David Levitte, Elysée's long-tilme Diplomatic sherpa, among the first to prepare the venue of the two political leaders and their preferred Experts, surrounded by many Journalists, not only from France and Germany (particularly numerous and interested), but also from the USA, and even Japan, Dubai, etc., as "EuroFora" saw on the spot...

- "During these troubled times, our Alliance with Germany and (personaly) the chancellor (Angie Merkel) are absolutely Essential, Strategic elements" : "Germany and France are EU's two great Economies", and "the (Global) Crisis gives us a supplementary Responsibility of Unity" 

=>, So, "We are going together towards the same kind of Europe, a Europe of Governments", decisively declared Sarkozy for the Franco-German engine, making a reference to an idea described at an earllier speech, in Toulon, where he had rightfully observed that, at least as things stand today, the main Direct Democratic Legitimacy, and the easier way for EU Citizens to express Popular demands, is through EU Council's composition by National Governments, (at least as long as EU Parliament has not jet fully developed its total potential).
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- Therefore, on Wednesday we shall send a detailed Letter to (EU and €urozone) President van Rompuy a Letter with the substance of what we want.

The "Essential" points are the following :
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- "1). The disruptions ("dereglements") which provoked the current Problems in €urozone must never happen again !", Sarkozy underlined from the outset, in  crystal-clear way.

-"We are advancing towards a Europe which will not start anew rhe Errors of the Past, when there were too many decisions taken without having previously considered all their possible consequences", so that, "today, in the middle of the (Global) Crisis, we must catch up with all these accumulated Delays", the French Presidenyy reiterated, in an obvious reference to the 1999-2002 period of mainly "Socialist" former Governments, (which, interalia, had also led to the Politico-Financial "Deal" about Turkey's controversial and unpopular EU "Candidate" bid, giving Ankara a lucrative, more than 800.000 € in full Grants each year, even during the Global Crisis, while, in exchange, Greece was incited to enter in €urozone earlier than normal, i.e. even before it did necesary Reforms, mainly to reduce the excessive number of counter-productive cushy job holders and/or politicall lackeys that mainly former PASOK Governments's clientelism and/or Nepotisml had hired, particulary since the 1980ies, provoking a growing Debt which was scandalously hidden by Goldman Sachs and EuroStata on 1998-2002, i.e. when €urozone decisions were taken, but "exploded" during the current Global Financial Crisis from 2009 : A Problem which, as recent Facts proved, can't be tackled just by over-Taxing and restricting the Production, nor by pressuring Poor People's meager Economies, with the Risk to provoke Recession limiting State's Tax Revenue, and/or Popular Revolts. Bur rather by succeeding to bring together Greek People''s vital wish to eradicate State Corruption, with Economic Efficiency's strong Structural Reforms, f.ex. on the State-controlled sector : See "Eufofora's" relevant, previous NewsReports).

- "Europe wants now to take the Lessons given by Past Errors, in order to re-establsh Trust and respect for ..Golden Rules. That's the message. Tha'ts the aim of our Decisions", Sarkozy stressed.

=> - "For that purpose, we need a New Treaty", concluded the French President on this introductory first point.

Indeed, "we (€urozone) need Structural Reforms which go well beyond simple agreements. That's why it's important to have a Treaty modification : We need obligatory Rules of Law, defined in an harmonized way allover the EU, whose conformity will be controlled by the EU Court of Justice, for all (€urozone) Countries to be really committed to respect the Stability Pact's rules and (have) Balanced Public Finances", added Merkel.
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- 2).  "Our (Franco-German) Preference is to involve all 27 EU Member States, but, in case of refusal, we are resolutely decided to advance forward inside €urozone'"s 17 Member States,  while leaving the door open for all those who might want to join us, both from within and from without €urozone, he anounced, stressing that "nobody is excluded".

-"We are Open : The logical way would be a Treaty Revision from all 27" Member Countries. "But we are absolutely Determined, in case of difficulties for one or another State to will or be able to follow, we say that what is at stake is €uro itself, and €uro is so Important that we are ready to make it by a Treaty (signed by an avant-guard of willing €urozone Member Countries), which wil be Open to all others" EU States;.

"That's why we are Determined to discuss all that, of which we'll be convinced advocates, with our collegues during the forthcoming EU Summit. .. We shall naturally consult all our Partners. France and Germany are just 2 EU Members, but our Economies have a particular importance and our Responsibility is heavy", added Merkel, speaking of the two most Populated EU Countries.
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+ (a). In, particular, we find necessary to establish Automatic Sanctions, f.ex. for those who violate the Rule hindering a Deficit greater than  3% of their GDP, unless a Qualified Majority (of EU/€urozone Member States) is opposed", he anounced.
As Merkel explained later, in the current situation of EU Treaty, it's the Opposite : i.e. Nobody is Sanctioned (punished) unless you have more than a Qualified Majority to condemn him, and this is often difficult, so that practically noone gets ever punished...

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+ (b) At the same time, €urozone should adopt "the Golden Rule", (alias "Debt Brake" in a German version)), "as we had already decided on jUKY 16", Sarkozy reminded, should be "strengthened and harmonized at an EU level, so that all National Constitutional Courts become able to check whether National Budget is timely heading towarrds an Equilibrium (Ballanced)", Sarkozy added.    

The EU Court of Justice will check the conformity of such National Rules with EU Law on this point, both leaders explained later-on.- "It won't be able to immediately declare a National Budget as Nul and Void, bui it will be able to say whether f.ex. the "Golden Rule", as it is described in a National Constitution, is adequate, or non, in order to check wherter the National "Golden Rules" represent a real commitment for equilibrated Public Finances", eplained Merkel.

- ECJ can't cancel a National Budget, but it will be able to check whether the Constitutions of €urozone Countries adopted, or not, a really "Strict" Golden Rulen, as we want, which seriously leads towards a Balanced Budget soon enough, by Deficits' and Debts' Reduction", clarified even more Sarkozy.

- "When a Continent (as Europe) adopts a Common Currency, it should also have the capacity to adapt its Legal Rules to the (evolving) Realities on the spot, .. so that we can always prove that €urozone is and remains a Safe area for Investment", added the German chancellor.
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- On Timing, "our aim is to have negotiated and concluded the entire Agreement between the 17 €urozone Members by the Month of March (2012), because we must advance Fast enough, so that the Ratifications can take place after the 2 important Political Rendez-vous in France, which are the Presidential and Parliamentary Elections" (on May and June/July 2002), Sarkozy anounced.

- "Among the Short-term Actions, we have already given a Date, from here up to March (2012), when the Treaty (Change) must have been wraped up, and, at that moment, we shall also see the (GeoPolitical) Framework, €uroZone, with those who are willing to join", added Merkel.
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Questioned on "how much Time do you need in order to judge, eventually, whether an Agreement with (all) 27 (EU Member Countries) might not be possible, and that we should, then, pass to Negoitiations with 17 (€urozone members) ?", Sarkozy replied sharply : - "Since Thursday", apparently meaning the December 8 informal Dinner in Brussels...

- "The Timing is very Simple for us : On Wednesday, we send the (above mentioned) Letter to (EU+€urozone) President Van Rompuy. On Thursday and Friday we aim to obtain all the (reactions on the) proposals that we make, and we shall see, at that moment, by a round-table discussion, if it's better to pass by a Treaty for 27 (EU Member States), or by a treaty for 17 (€urozone Members)", the French President explained.

=> The main point is "our Will is to advance with force in order to reestablish Trust in €uro and in the €uroarea. That's it. We don't have Time" to waste, because "we are fully aware of the gravity of the situation (in the Global Crisis) and of the Responsibilities weighting on our shoulders. So, things are crystal-Clear  :"

- "The Faster possible, on the basis of this Agreement between France and Germany, (which remains) Open to others", Sarkozy briefly concluded on this obviously crucial, Strategic point.

- "It's absolutely like this", fully agreed Merkel. "We are absolutely Determined for Decisions to be taken during the Next EU Council's Summit", next Friday, December 9, in Brussels.                                                                                                                                                                                                                                                      

+ But, moreover, "we shall, naturally, speak with EU Parliament, present to MEPs our Projects, in order to avoid any eventual misunderstanding", she added, topically speaking almost at the eve of an exceptionally important Congress of the biggest EU Political Party, that of ChristianDemocrats/EPP in Marseille, from 6 to 8 December, i.e. at the eve of Brussels EU/€urozone Summit, due to bring together both MEPs and Heads of States/Governments from all over Europe...
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Replying to a Question about a possible Rejection by French  "Socialist" candidate Hollande, Sarkozy observed that he had been visiting Berlin recently, where the German SPD has .. . already adopted  a "Golden Rule" : "I can't imagine such a Contradiction, such an incoherence, as for someone (like Hollande) who visits German Socialists who have voted for the Golden Rule, and , then, come to back to France, claiming that he couldn't vote the same rule here &In fact, "what is a Truth beyond the Rhine River, (Historic common borderline shared between France and Germany) is also Truth from the other side", Sarkozy criticized.
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    - 2) Meanwhile,  "What happened in the case of Greece, will never happen again", about "Private Secrtor participation", since €urozone will "stick to IMF's case-law on this matter",   firmly promissed Sarkozy.

I.e. "By bringing the ESF closer to IMF's rules, this will prove that an €urozone State's Loan isn't less Safe than another, and that €urozone is a Safe area for Investment", stressed Merkel.

Replying later-on to Questions, the German chancellor rightfully denounced the fact that, "as we saw, it was what was said by the former Prime Minister (in Greece, Giorgos Papandreou), about setting up a Referendum, which really Destabilized the Markets,and that's what we must now overcome", as she said, reminding PASOK' chief's obviously opportunistic attempt to divert attention from Popular unrest against his policies, by upseting Financial Markets with alarmist statements, (almost alike he had reportedly done, back on 2009, since the beginning of the Debt Crisis in Greece, when he was accused by the Greek main Opposition leader, Antonis Samaras of "New Democracy", to provoke an amok among Interest Rates' brokers by excessively alarmist statements, which  worsened the situation by artificial means...

    Because of these and other such incidents in the Past, "we've already said since July (2011).. that Greece is a particular case, an "ad hoc" case, and that that voluntary (Debt) "haircut" (of a %)was absolutely Exceptional. And we also added that (any eventual) Solvability Issues will be solved according to Rules by IMF, which has Different approaches with very Differend Historic Experiences", Merkel explained.

    - "We always said that the case of (what was provoked on) Greece was Particular case. And ... you can't compare a Big Economy, as that of Italy's, or of Spain's, with what happened in Greece", agreed also Sarkozy.

    + "And we want to say, together with the (German) Chancellor (Angie Merkel), to People with Savings all over the World, that in Europe the Rule is that we pay back our Debts, we reduce Deficits, we find anew Growth. All this is part of that "Return to Trust", according to Chancellor Merkel's call", stressed the French President.;
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    - "That"s why Europe wants now to take the Lessons given by Past Errors (See supra), in order to re-establsh Trust and respect for these Golden Rules. That's the message. Tha'ts the aim of our Decisions", Sarkozy underlined here.
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    - 3) An "acceleration" of the "European Stabilisation Mechanism", as observed the German chancellor, will make it start as early as "from 2012, instead of (the ptreviously proposed Date of) 2013", and "its Decisions" will be facilitated, since they "will be taken no more by Unanimity", contrary to the initial draft, "but by a Qualified Majority, that we estimate around 85%", Sarkozy anounced.

- "In this way, €urozone's future moves can no more be blocked just by a recaclitrant State, contrary to the will of the Majority, Merkel pointed out.

+ "On the FESF, even if we might have less resources than what some wanted, nevertheless, we (€urozone) already have, + 250 Billions €, with a wider Flexibility, and I'm ready to see how that Money could be used in liaison together with the IMF : We aren't opposed to (some) solutions", the German chancellor added, apparently leaving open some perspectives to evolve further in certain ways.
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    - 4) In addition, "Heads of State/Government's summits, which constituite €urozone's Economic Government, should be held each Month, (at least) as long as the (Global) Crisis will durate, and each meeting should have a specific Agenda, focused on the need to boost €urozone's Growth", the French President advanced.

    - Thus, the new and much more Frequent, "Monthly €urozone Summits",  focused "on ameliorating our Competitiveness and Growth",  "will have a Thematic Agenda, f.ex. on Innovation, Labour Law, Infrastructures' development", etc. each time, "in a spirit of Convergence", explained German chancellor Angie Merkel.
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    - (5) "As for ECB, we agreed to confirm (new Italian Prime Minister) Mario Monti's statement during the (recent) Strasbourg'"s Summit (See "EuroFora"s NewsReports from the unprecedented event) : (I.e. to) TRUST ECB, its Independence, and abstain from any kind of comment, be  it positive or negative, on its activities" , Sarkozy oncluded. (See "EuroFora"s NewsReports from that event).

=> So, there are "No Comments on what (ECB's new President) Mr. Draghi will do : This (stance) is inspired precisely by what we (France - Germany and Italy Leaders) decided in Strasbourg. No Comment", he added later in reaction to a question on ECB's on-going, meanwhile, selective but timely interventions in the Financial Markets, even if in full "Independence" :

How exactly ECB intends to use its Independent but Responsible Role in the foreseable Future, is expected to be timely unvealed during a crucial, 1st official Press Conference by its new President Draghi in Frankfurt, after a Governing Council's plenary session, on Thursday, >October 8, (where "Eurofora" has been invited by ECB's Press service to be present).
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On the contrary, both "Germany and France totally agree that €uroBonds are not at all, at any case, a solution to the crisis,", because "it would be a strange idea to make Germany and France pay for the Debt of others without even hyaving the power to control the emission of others' debt", since "this would make impossible to convince others to make similar Efforts to those trhat we are currently making ourselves, if all (EU) debts were mutualized from this moment", he explained in conclusion. ----------------------------------------------

+ Sarkozy and Merkel confirm close Franco-German convergence    
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    - Speaking on the present "quality" of Franco-German relations, German Chancellor Angie Merkel stressed that "we are reacting in real Facts, and we are choosing the Best way,. That's what makes our relation a Dynamic, Vital one : What gives its Quality is the fact that, at the end, we always find eachother, and I think that we are on a very Good truck".

    + "We are working together with a unique intensity, we are searching common solutions, and we have crafted New common views on that common Currency... The lesson of all this Work is that there is not going to be, never again, any such conflict" (as in a remote Past). It's true that "Europe cannot be build on false compromises, and it's also true that some had weakened (EU's) Stability Pact, just to serve the interests of a moment, without thinking about the Future, and that's what we must change now" :

    => "We must also think about the Future, and a Europe with Common Values, where the Franco-German friendship plays a particularly important role, must be a Union with Solidarity and a Strong Union, which promotes its views in the World in Future", stressed Merkel.

    -"When we chose, as we did.., to advance towards Convergence and Unity's reinforcement in Germany and France, it's a Strategic, Historic choice, because we both believe that the most Precious heritage that left us our predecessors is Friendship between France and Germany", stressed also French President Nicolas Sarkozy. "Our two countries were at Deadly Conflicts for 70 Years" in the Past, and, afterwards, we had Peace since 70 Years. What we want for the Future is to pass through Convergence and Peace.  For that purpose, we must Understand eachother, accept some differences, prepare the conditions for agreements by Compromises which give something to everyone involved", because "our Aim is for the €uro and all Europe to be strengthened, to find anew job-creating Growth. That's why we have decided to advance in a long road Together",   the French President added.

(NDLR : + See also another "EuroFora"s NewsReport from the spot, specifically focused on Statements by a Sarkozy's counsellor to "EuroFora" on UK's stance vis a vis €urozone's moves)

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(NDLR : "Draft News", as already sent earlier to "EuroFora"s Subscribers/Donors. A more accurate and complete, Final version may come asap).

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