Schauble+Daul:Exit from Economic Crisis=Political Union +Media/Institutions boosting Popular support

 *Strasbourg/CoE+EUParliament/Angelo Marcopolo/- The Need to urgently develop New Media able to motivate EU Citizens and develop a European space with Topical Debates for EU Decisions with strong Democratic Legitimacy on important common issues, was strongly stressed by German Finance Minister Wolfgang Schauble, together with EU Parliament's biggest Group (ChristianDemocrats/EPP) President, French MEP Joseph Daul, speaking at the Historic CoE's Hemicycle in Strabourg, shortly before crucial Scheuble meetings with New Greek Finance Minister Stournaras tomorrow in Berlin, followed by a much-awaited ECB collective decision-making session at nearby Frankfurt, on the occasion of a Conference on EU's Future organized by the prestigious French Senior Administration Officials' School "ENA", in cooperation with Paris' International Manager School ECSP's "Europe" section, in the Original frramework of  a Simulation of EU Decision-Making process with the participation of more than 650 Students from various EU and other Countries, followed also by relevant statements to Strasbourg Journalists including "EuroFora". :

- "Strasbourg is one of the Best places to Discuss Europe's Future", because, in addition oif being "the Seat of several European Institutions" (such as the PanEuropean CoE and the ECHR, the full plenary sessions of EU Parliament, etc., the City "has also become a Symbol for both Franco-German Reconciliation (since the 1960ies), and European Unity", (particularly since the 2004 EU Enlargement, prepared by a Decade of CoE previous extension to former Central-Eastern European Countries between 1993-2003), stressed in this regard from the outset its "Neighbour" from the other side of the Rhine, based at nearby Offenburg.

=> - In fact, the main Risk is not so much Economy as such, but to "lose sight at how to Advance Europe's (Democratic) Legitimacy with its Citizens" (See Infra) :  

    - "I'm deeply convinced" that "all .. Measures .. agreed in Europe about Stability and Growth-oriented policies .. will ultimately fail, IF we cannot convincingly Explain to (EU) Citizens and Markets why we Need Europe in the 21st Century", warned the experienced German Finance Minister

    - "My" brief Answer is that EU's "contribution to Global Prosperity", "Long-term, Stable and Sustainable Growth"; "Mix of Freedom and Social Equity", and capacity to provide Public Goods on a Global scale", that Member states cannot provide themselves"

    However, it's true that, today, "it's mainly Asian Countries (as China, India, etc) who are leading the way out' of the Global Crisis, while EU's and USA's contribution to Global Growth "has been fairly Limited", added to a "Demographic Decline", as well as "stubborn .. Unemployment", and "EuroZone Crisis".

     But, even if there is an unavoidable "Shift" of Growth rates towards Asian and other emerging Countries, nevertheless, EU's "differend" contribution to the World is that "We (Europeans) can provide Stability and Sustainable Growth", in the middle of "an Uncertain World", "if we overcome a too High Division", "prevent political Fragmentation", and create "Political and Economic Bridges", Schauble stressed,

    .. objectively pointing on September 2012, at a Warning already launched by the IMF at ECB's 1st Decade Anniversary Heads of State/Government Summit, back on June 2008 in Frankfurt (see "EuroFora"s co-founder's NewsReports from the spot at this exceptional Frankfut event, on which we had an interesting Question/Reply with IMF's Director for Europe, Alessandro ..., precisely also on how to overcome such a Competitiviness and Growth Diverging pattern denounced 4 Years earlier, on 2007-2008 just before the Global Crisis).. ------------------------------------------------------
    Because "Problems" such as "Nuclear Weapons" proliferation and "Climate Change", "Terrorism, Disease and Migration", as well as "Finance, Energy, Food and Water supply", are "Global Problems that require Global Solutions", which "cannot be addressed effectitvely by States, which have Sovereignity only within their own Territories", as he observed.
    -   
     + Moreover, "in the 21st Century of Globalizaton, which Changes the balance of Economic and Political Power" worldwide, there is an even greater "reason for European Unification", for "Europe to come ever Closer" together, to "become en Entity able to take Action in the World", and, therefore, "European Integration.. must create New SupraNational Governance structures", as "the Next Step towards European Unity", Schauble firmly anounced.
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    - Back "in the 1990ies", "we (EU) agreed to .. advance European Monetary Union", while "it was yet impossible to agree also on a Political Union, at the time, even if policy-makers were already "aware" that we needed that eventually", he revealed, acknowledging a pattern similar to "EuroFora"s earlier presentation, about Common Currency being created with €uro and ECB, with the expectation that subsequent Contradictions will incite Member States to establish also an Economic and Political Governance, sooner or later, as a landmark EU Parliament Plenary's Debate on "Europe and the World", together with the then UNO's Secretary General, etc? in Strasbourg, had already highlighted as early as since 1995, (See relevant previous "EuroFora"s NewsReports).

    - But, even if it had been foreseen from the start that States which couldn't or didn't want to respect the Stabiility Pact should be penalized by having to pay Higher Interest Ratezs, nevertheless, "it didn't work as scheduled", and several EU Member States enjoyed comparatively "Low Interest Rates for Years", and "allowed Public Deficits to balloon", while they were "Forgetting about the need to improve Competitiveness", Schauble denounced.

    However, this stopped "after 2008", when, "as a result of the (Global) Financial Crisis, ... Markets are increasingly Uncertain as to wheher .. Deficits and .. Debts will be .. Sustainable", so that "Investors' willingness to accept High Levels of Public InDebtedness Shifted" away, hiiting some €uroArea Countries badly, even if "this has not yet impacted the US", (whose growing Debt was practically leftin order to be examined in 2013, (i.e. after the forthcoming US Presidential Elections)...

    " A main Problem" that EU "Politicians are facing" is that, recently, "Investors lose Confidence in Europe", to the point that, sometimes, "We (EU) loose in 1 Month the Confidence that we are gaining only in Years and Years :  That's our problem, and we have to find a solution", Schauble pointed out speaking also later to Journalists in Strasbourg, including "EuroFora".

    >>> The principal reason is that Investors "don't understand why Decisions in Europe take so Long", since "Europe's constitution is Complicated, so that, if Decisions are taken with Democratic Legitimacy, they take Time" (f.ex.,  for 27 Member States to agree, both between them at EU level, and inside each Country, at National levels, etc), as he said. But, meanwhile, "Painful Reform Programs conducted by Countries in Trouble", and "Credits Guaranteed with Taxpayers' Money in "Solid" Countries",

    => To overcome that "Confidence Crisis", EU "Monetary Union has to make "Institutional  Reforms" (A), and "Troubled Countries .. have to implement Structural Reforms, that lead to Competitiveness and Growth" (B), Schauble pointed out.

                                                     (A)

    The first point means that EU "has to create a Fiscal Union, alongside the (already existing) Monetary Union", the experienced German Finance Minister stressed.

    Because "the Crisis cannot be solved just by Joint Debt Liabilities of €uroArea Countries, without a possibility to Press Members for Stability-oriented Policies", since "this would eliminate any Incentive for High-Deficit Countries to make necessary Efforts to Reduce these Deficits", he warned.

    => "In order to Prevent such Moral Hazard, Decision Power and Liability have to be in 1 Hand", so that we can have "Fiscal Consolidation in All €uro Countries", Schauble underlined. "This is an Important lesson from the Financial Crisis", as he said.

    - Indeed, "if you try to Solve the Problem of Sovereign Debt just nu Monetaru policies, you won't succeed, because this would Destroy any Incentive for any Member State to make necessary Reforms : We need also Fiscal Policy measures, in order to boost Stability and Sustainable Growth", Schauble explained further later-on, launching a Timely Warning just a few Days before a crucial ECB's Governing Council meeting at nearby Frankfurt scheduled for Thursday.

    => That's  why an important 1st step is the New €uroTreaty that we agreed a year ago (between August and December 2011 : See "EuroFora"s NewsReports from August 2011 Elysée Palace Franco-German Summit in Paris, and from December 2011 EU Summit in Brussels), which contains a "Debt-Brake" agreed by 25 EU States", he reminded, "since (Financial) Stability is a Pre-Condition of Sustainable Growth", as he said.

                                                          (B)

    - "But, if we want €uroArea to function properly, .. it will require also that Countries be economically Competitive as well" , he added.

    - "This is the Task of every single (€uroArea Member) Country, and, therefore, lies at the Core of the Adjustement Programs, agreed by the EU with the so-called "Program Countries", where some "Long-term Structural Problems .. must be addressed", as, f.ex., "Dysfunctional Labour Markets", disproportionate and/or counter-productive Public Sectors, etc., "in order to preserve and strengthen the EU and its Capacity to act in the World.

    Already, f.ex., "Recent Reforms in Estonia, but also some Years ago in Germany", as well as "Ambitious Reforms which are on track in Portugal, Ireland, Spain and Italy", "bear witness of EU's ability to Change for the better", he observed, while also noting, later-on, that Greece has also to catch up the Time lost (by previous, mainly PASOK Governments, since the 1990ies-2012) in completing necessary "Structural Reforms", (not only of the Labour Market, which has reportedly advanced rather well, but particularly on the Public Sector, where the Clientelism/Nepotism of mainly PASOK previous Governments, during the period 1981-2011+, has notoriously appointed a disproportionte number of counter-productive  Cushy Job Holders and/or abusive Political Lackeys, often Corrupted and/or otherwise Criminal, who have become Unpopular among a Majority of People; froim various Political Horizons, who strongly wish a kind of  "Clean Hands" Anti-Corruption campaign, throughout all the Greek State's assets : Comp. several relevant "EuroFora"s NewsReports published previously).

    + Concerning "Fiscal Discipline and Economic Coordination, .. some Fundamental Reforms were introduced by the so-called "Six-Pack", already since 2011, he reminded :

    - F.ex., there is now "a stronger focus on Prevention", as regards "the Maximum Levels of Deficit (3% of GDP) and of Debt (60% of GDP) set by the Stability and Growth Pact (the so-called "Maastricht" criteria), "by emphasizing the Medium Term Objective (MTO), towards nearly Balanced Budgets", and by "obliging now States to Reduce excessive Deficit by 1/20th each Year", as well as by "Earlier Financial Sanctions, and more Automatic Decision-making, with a "Reversed qualified Majority Voting", (i.e. Sanctions are imposed unless a Qualified Majority objects).

    + A "MacroEconomic Surveillance procedure helps to Prevent and Correct Imbalances", by "obliging States to address Structural weaknesses and improve their level of Competitihveness at an Early Stage", as he added.

    - Moreover, the "agreed "Fiscal Compact" (New €uroArea Treaty, on Stabiliy, Coordination and Governance), "on January 2012", (See "EuroFora"s NewsReports from 1/2012 Brussels' EU Summit), "amongst others", it also "requires States to  use "Debt Brakes", with an Upper Cap of Structural Deficit at 0,5% of GDP", whose "Implementation .. will be Checked by the European Court of Justice".

    ++ "A European Stability Mechanism (ESM) was created, as a Permanent Financial Assistance provider to States, if needed. The New €uroArea Treaty, links Solidarity and Solidity, by conditioning the Financial Assistance to the Treaty Ratification and to the Implementation of the Balanced Budget Rule.

    +++ In addition, the so-called "2-Pack", supplementary Reform, brings Stronger Monitoring of National Budgets, via the "European Semester" in the 1st Half of each Year, so that infringements of the Stability and Growth Pact "shall be Detected and Corrected the Soonest" : States submit a Draft Budget for Next Year before Mid-October, taking into account the Recommendations received since June, so that EU Commission can Assess the Draft and Request a Revision in case of "Serious Non-Compliance". Moreover, €uroGroup will Discuss EU Comission's assessment, and Results will be Published, in order "to increase Pressure on States to adhere to Maastricht Criteria".
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    >>> "But", all these "Improvements", "will Not suffice to overcome the Weaknesses of Economic Governance",  Schauble warned. Because the "Crisis revealed that, .. Monetary Policy must be combined with more EU Competences in Economic and Fiscal policies", for the Union to become able to function properly.

    => "F.ex. by introducing a VETO Right on Draft Budghets which don't comply with Stability Criteria", he suggested.

    + Thus, "we have to Think about a Further Transfert of National Competences", he concluded.

    * But, this "Raises Questions regarding National Parliaments' Budgetary Sovereignity, and DEMOCRATIC LEGITIMACY", the experienced German key Minister stressed.

    - "Treaty Changes have to be considered not only for the Tranfert of Competences, but also for Democratic Legitimacy improvements".

    - "That means that we need 27 Member States, because we'll Preferably do it by EU Treaty Change, and, therefore, we have to ask our Brittish Friends Not to Block such a Change, whose general lines are shared by all, as he found, pointing out that "we'd be happy ofo the UK would play a more Important role in Europe, as he added later-on.

    => But, the most Important point of all, is the fact that "EU's Nation States have definitively Lost their Monopoly on Regulation", even if "No one wants to impose an EU Super-State, because it would basically be an attempt to tranfert the Regulation Monopoly, (characteristic of Out-Dated Nation-States), to a Larger Unit", so "that would neither be New, nor Worthwhile", he observed.

    >>> So that "we have to address the Basic Problem" :  -  "Today, in 2012, EU Lacks the approval of Wide parts of its Peoples", but, at the same time, "We (EU) Need their Approval, if we re-allocate Political Powers and Responsibilities on a Large Scale", Schauble stressed.

    + Moreover, "If Europe is to grow together and become an Effective Entity, we Need much more than only the support of political, economic and academic Elites : What we Urgently Need is the Backing of the Wider Population" of EU Citizens, the experienced, Key German Minister warned.

    - "One of the underlying Problems, is the fact that HERE IS NO EUROPEAN PUBLIC", (yet), he regretted, (obviously pointing at a main aspect of "EuroFora"s Project, i.e. to actively contribute to create a European Public Area for EU Citizens Debates on main European Decision-making, which affects their Lives)....

    - "To put it more positively : - The chronic Problem of Democratic Legitimacy became more Accute, thanks to the €uro Crisis", also because, "on the Contrary, we are faced with a Worrying Tendency towards Nationalistic  Movements and a revival of prejudices and Hostilities". "But it's also clear that there is No Neat Solution  to the Problem of Democracy in the EU", he admitted.

    => Therefore, concerning "the EU, which represents a a genuinely New SupraNational politeia, Part Inter-Governemental, and Part Federal", "for me, it is indisputable that More Democratic Legitimacy for Europe requires Reforms at Both the National and the European Levels", Schauble pointed out.

    - "Because", "when the EU is aquiring More Powers", it obviously "needs" also more "Direct Democracy", he observed. Even the current "EU Treaty states that Members" States are "Resolved to continue the process of creating an even Closer Union among the Peuples of Europe, in which Decicions ae taken as Closely as  possible to the (EU) Citizens", he observed.

    >>> Thus, "we have to Strengthen the ... Links between Europe's Citizens and its Institutions", and that means that EU "Treaty Changes have to be considered not only with regard to the Transfert of Competences (from National to EU level), but also in order to improve Democratic Legitimacy", the German key Minister stressed.

    - This could be done, "F.ex. by a Direct Election of (EU) Commission's President, and/or a Stronger involvement of National Parliaments in the EU Legislative processes, (e.g. by establishing a 2nd Chamber or a Joint Committee)", etc., he suggested, among various such possibilities.

    "There is No Alternative to European Integration", because "in itself, No European State is Big and Powerful enough to play any Meaningful Role in a Globalized World", so that "if we are to Shape this World in the 21st Century, we must do it Together", Schauble pointed out, declaring that "Germany is determined" to resolutely advance "in the Path where "€uroZone's partners have embarked upon", on the basis of "the Right .. Principles" :

    - 1) "The central Economic Principle that Whoever Decides should be Liable for the Consequences of these Decisions",

    - 2)"a Balanced Mix of (Inter-Governemental) Cooperation and Sovereignity Transferts (to EU level),

    - 3) "as well as a Strengthened Democratic Legitimacy",

=> with which EU can "build a genuinely and durably Stable Monetary Union, thus expanding the influence of a Federal EU in the Making", as Schauble concluded, optimistically.

    - "This will not happen overnight", but, "on the contrary, it will take Time and needs Hard Work, but I'm deeply Convinced that it will finally pay off", the experienced German key Minister promissed
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    + Agreeing on this obviously Important point also for "EuroFora"s Project, the President of EU Parliament's greatest Political Group of MEPs, that of ChristiansDemocrats/EPP, Joseph Daul from Strasbourg, stressed, in conclusion, that EU must better communicate, in the way it speaks with our (EU) Citizens on main issues, such as Economic and Financial Policy, etc.. That's why "there is currently a Need for Press Media to come much Closer to (EU) Citizens", to Drop esoteric Technocratic "Formulas" (such as ... "6-Pack", "2-Pack", etc., Comp. Supra), but speak a language that "People can understand" in Public "Debates", "explaining" things in a "Simple" and crystal-clear way.

    Daul stressed that point on EU Media and Citizens in relation to Scheuble's call to build a Democratically Legitimized Political Union able to solve the current Financial Problems, just before an exceptionally important EPP Group MEPs' Conference at Florence, Italy, later this week, with the participation also of Prime Minister Mario Monti, EU Council's President Herman Van Rompuy, EU Commission's President Jose Manuel Barroso, vice-Chairman Antonio Tajani and Janusz Lewandowski, EU Commissioner for Financial Programming and Budget, etc, who will al focus, precisely, on "a New Political Europe"...

    "EuroFora" remains, more than ever, firmly convinced, that our Initial, Original Idea, (initially conceived, formulated and published as early as since 1997, but which became much more necessary after the 1999-2004 unprecedented, sharp Majority Abstentions in EU Parliament's Elections, followed by the 2005-2007 three "No" to EuroReferenda in France, the Netherlands and Ireland, etc), to prepare and start stimulating topical, serious but pluralist European Debates with EU Citizens' active participation on the most important forthcoming and/or recent EU Decisions which affect their Lives, and related EU News, is one of the Best Ways to energetically and efficiently contribute into building that European "Public Space" (Offentlichkeit) and Popular support which is Urgently Needed in order to become able to create that Democratic and strong Political Union which has become of vital importance today (Comp. Supra).