French President Sarkozy to EuroFora: Research/Innovation part of €uroZone+ Competitivity Summit ?!

 

*Brussels/Angelo Marcopolo/- Concrete ways to boost Scientific and Technologic Research in €uroZone's Member States can be a key Factor of a brand new Competitivity Pact due to be adopted by an exceptional €uroZone's Convergence Summit on March 2011, proposed earlier today by the Franco-German Leaders and accepted by EU's Energy and Innovation Summit, as it results from a reply to an "EuroFora"s Question by French President Sarkozy, speaking together with his Economic and Political Counsellors to Journalists in Brussels, including "EuroFora", at the conclusion of the 1st EU Heads of State/Government's gathering this year.

Developing now further the Strategic moves towards stronger Integration and Convergence at EU's core, initiated earlier at Freiburg's Franco-German Summit and welcomed by EU's Brussels Summit on December 2010 (See "EuroFora"s NewsReports from both events, on the spot), French President Sarkozy and German Chancellor Merkel anounced together at Noon their joint decision to propose to all interested EU Heads of State/Government to coordinate a series of concrete Structural Measures in their Economic Policies in order to achieve the goals of a "Competitivity Pact" due to be decided at a special €uroZone+ Summit early March.
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    Well informed Diplomatic sources, speaking to Journalists including "EuroFora" earlier in Brussels, stressed that this was "a very Important new move", both because it organized, for the 1st time, a Forward-looking €uroZone Heads of State/Government Summit, which was due to open New, Strategic Perspectives for the Future, instead of dealing just with Urgent matters, as it had succesfully been done in order  to start giving a reply at the beginning of the Financial Crisis with the October 2008 €uroZone Summit, during the French EU Presidency, at Elysee Palace in Paris (See "EuroFora"s NewsReport from the spot), as well as because the new move implied a Political Will to take a series of "Structural" Measures to deeply transform €uroZone into a much more Competitive area in the World.

    - "Germany and France want to make it clear that we defend the €uro not only as a Currency, but also as a Political Project", which means not only the Solidarity that we introduced in 2010, (f.ex. with the European Financial Stabilisation Fund and the Permanent Mechanism" : See "EuroFora"s relevant 12/2010 NewsReports), but also, and above all, that €uroZone Countries ...are also Growing together", thanks to "a Closer Economic Cooperation, able to ensure our People's Prosperity" by "increasing our Collective Competitivity", stressed Merkel from the outset.
    
- In order to make it Politically clear that we want to Grow closer together, we should be guided by the Best examples, taken as standards, inside a Competitivity Pact, which must show, in one Year, that we are serious, not about speaches, but about effective action in order to make Europe a more Competitive Continent, the German Chancellor concluded.

    - "We want .. to advance at a New Stage, bringing a Structural reply", by "a Stronger Integration of Economic Policy serving the Goal to reinforce our economies' Competitivity", added Sarkozy.
    
    - This expresses "an extremely strong Political Will of (EU's) Franco-German axis, for a structural European Ambition, able to respond to the challenges faced by all our economies, so that all Global observers can realize that the European Economies are really heading towards a Competitivity-driven convergence", stressed the French President.

 

Even if the Franco-German Leaders didn't yet present officially a series of concrete Measures at this point, entrusting EU Council's President Herman Van Rompoy to prepare a set able to broker a large Agreement at the forthcoming €uroZone's special Summit, nevertheless, they didn't deny that they already had some Ideas about what might be included inside that "Competitivity Pact", or not.

 - "Scientific Research, Mr. President, could-it become part of the [ €uroZone's] Competitivity pact ?", "EuroFora" questioned Sarkozy afterwards.

 Recent moves towards Universities' "Autonomy" in France and elsewhere, (which started initially with the reUnification of Strasbourg's University since 2009/2010), in theory aim to make Economies on Adminsitrative and Bureaucratic red tape, while also boosting Investment to Scientific Research and Technologic Innovation, often working closer together with big Industry and innovative SME's, so that it all contributes to augment a Society's economic Competitivity, as "EuroFora" understands it from various relevant sources, (Comp. earlier NewsReports).

    "Research" is, moreover, included among various other "Compeitiiy" factors, also by French Businessmen's (MEDEF's) Chairwoman Parisot, acccording to oher sources.

    - But, "even if we have worked a lot with Chancellor Merkel on these issues, (and) we have some Ideas, nevertheless, in order to unite together the largest number of (EU Member) States around these ideas, we prefered not to put a paper on the (negotiation) table, but to ... invite (EU Council) President Van Rompoy, on the basis of the ideas that we communicated to him, to gather the wider possible consensus, so that we'll decide on March", Sarkozy anounced earlier carefully, reserving final decisions on concrete matters for later-on.
        
    + Because "our idea, with Mrs Merkel, isn't to impose to everybody the same thing : F.ex. on Pensions, the point isn't to impose to all the same Year of Age, but rather to agree on a link between the years needed and the life-span, which variess from country to country.Or, f.ex., for the Tax on Profits, without denying differences, we could agree on a fiscal basis, etc., he observed. "Convergence doesn't mean total Identity, but leaning towards rapproachments, instead of widening gaps. And we hadn't to decide Today on Details, but to mark a political Will for a Pact, an Economic Governance, a Convergence". There is no rigidity: After negotiations (led by Van Rompoy with Baroso's support) we shall see where we'll arrive. I already said, through my aides, that we don't agree on all ideas, but that's not a catastrophe", since "we agree on Principles : For an Economic Governance, a Convergence and more Integration of Economic Policies", as well as "€urozone (Top) Meetings for  €uro's issues, and Open €uroZone Meetings for the Competitivity pact", he explained.
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+ Just a few minutes later, German Chancellor Angie Merkel, concluding her own Press Conference at an adjacent Room, also hinted that Scientific and Technologic "Research policy" should indeed, be part of €uroZone's forthcoming, 2011 "Competitivity" Pact :

- "This involves not only Financial issues, but can also include Social affairs, Research Policy, etc", for which National Governments are legally competent, and, therefore, should closely coordinate their actions inside €uroZone, Merkel stressed, apparently agreeing with Sarkozy's view on this key point raised by "EuroFora"s question.

Moreover, even Germany might have some interesting lessons to learn f.ex. from Sweden on Innovation policy, where it seems to be doing better, while €urozone Governments could usefully coordinate their parallel actions on some key points concerning Education, f.ex., even if most of it may remain in their national competences, Merkel added in this regard.

 

+ Sarkozy, speaking further to Journalists in Brussels, including "EuroFora", after his concluding Press  Conference at the end of the February 4, Energy and Innovation EU Summit, stressed the "Importance (of) what was decided" :  

F.ex., in order to broker an Agreement, we had to "explain to those (Non-€uroZone Countries) which are afraid to be excluded, that Structural problems can be dealt also in a 17-plus format, where they can join-in if they wish.

While also convince "those who are more Sovereignists, afraid that they might not keep the possibility to decide on some issues that they raised, (f.ex. Salaries' indexation, Age for Pensions, etc)", by telling them that all concrete points will be open to discussions, and that Formulas can be found to alleviate particular fears, while also clearly keeping the general, overall trend towards enhancing competitivity.

=> - "Convergence is a Direction, it's not a starting point !", Sarkozy stressed, adding that it was "normal to have discussions" on particular issues, once "we agree on Principles".
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- "It's normal for the issue of €uroZone's Economic Governance to be decided by €uroZone Countries, since its their Ministers of Finance who are due to follow this up, eventual Sanctions are to be applied on €uroZone Member States", etc.

- So that, when we speak strictly about €uroZone's specific Economic Governance, that's for €uroGroup's early March Summit to decide.

But when it comes to Competitivity stricto sensu, then, it's also other Non- €uro EU Member Countries which are welcome to participate, if they wish, f.ex. in a 17+ format, considering also that some among the remaining 10 EU Countries wish to join the €uro in future. But even for the UK, which opted out, nevertheless, already back on 2008, at the 1st ever €uroGroup Summit, focused on the urgent need to struggle against the Global Financial Crisis, the British Prime Minister (then G.Brown) was present during the greatest part of Heads of State/Government discussions, and left only at a later point, Sarkozy reminded.

    * It's presicely at this Strategic Juncture, that the issue of Scientific Research and Technologic Innovation, raised by "EuroFora"s Question to the French President (See supra), might probably facilitate also a useful cooperation between €uroZone Countries and the U.K. as well as other Non-€uro EU Members, considering particularly UK's past insistance on Science and Innovation during the latest, 2005 negotiations on EU's Multi-Annual Financial Perspectives, (Comp. relevant publications by "EuroFora"s coFounder then).
    
    Considering also the well known importance that both the former EU "Lisbon Strategy" and the current "2020 Agenda" gave to the development of Scientific Research and Technologic Innovation, this might explain even more the reasons for which EU Commission's President, Jose Barroso, reportedly supports the idea to organize a "Competitivity" €uroZone Summit on March :

    - Barroso clearly stated his agreement, later-on, during EU Summit's concluding Press Conference, together with EU Council's President Van Rompoy, by observing also that the whole idea is that, while EU Commission will keep its already existing competences, in addition,  more Economic Cooperation will extend between €uroZone Countries, in order to coordinate their action in areas which are now in National Competences, so that Europe will increase, in fact, its capacity to act", as he said.

    - German Chancellor Merkel, speaking earlier at her final Press Conference, made it, indeed, clear that many among the "Competitivity" issues are and will remain in the Competence of National Governments, without any transfert to the EU, but with the important difference that now, €urozone Countries want to closely Coordinate their actions, through a systematic InterGovernemental Cooperation, able to provide a "New Quality" in Europe's overall efficiency.
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    + A strong backing was also given, in Crystal-clear Pedagogical terms, by EU Council's President Van Rompoy, in his concluding Press Conference :

    - "€uro is a Strong Currency, particularly when there are no major divergences inside its area", he stressed in reply to questions, highlighting an issue which had been outlned already at ECB's 10th Anniersary, July 2008 in Frankfurt, (comp. "EuroFora" co-founder's PressReports from that event). - "It's only weak when we might have major divergences, and that's why it's very logical that we work Closely Together, because we have this Common Currency, to decrease divergences by coordinating more our policies, he explained.

    Therefore, the 2/2011 EU Summit reached "a Broad Agreement" for "deeper Convergence" to enhance "Competitivity", Van Rompoy stressed from the outset. Even if  we didn't discuss yet in depth on concrete proposals, which will be prepared for March, nevertheless, there was a large support of all 27 EU Member Countries on the principle of the need to strengthen Competitivity, by giving a New Quality in Coordination and a Higher degree of Convergence, he noted.
        
    In the €uroZone, it was clearly decided to strengthen Economic Cooperation, since, naturally, when you have a Common Currency, you need also Closer Economic Coodination, because a currency is strong only when its Economic Fondamentals are strong, Van Rompoy added (comp. supra).