"Europe must go for a big bang, a federation, the United States of Europe, or quite simply, integration" - Joseph DaulFor Joseph Daul MEP, Chairman of the EPP Group: "The time has come for the Eurozone countries and for all other EU states who want to be involved, to take decisive action by adopting, together and at the same time, measures which are strong enough to put an end to the doubts on Europe's ability to assume its responsibilities."
In a debate in the European Parliament on the economic crisis, Joseph Daul said that on a proposal by the Commission, the governments of the Eurozone and all those in the Union who wish to do so, should decide to deal drastically with their debt, collectively, and on the same day, by taking coordinated measures to guarantee the sustainability of the pension systems or to ensure the effective harmonisation of their fiscal policies, particularly on companies.
"By making an economic government reality, a government run by all the Eurozone countries, Europe would kill two birds with one stone: it would show its capacity to act in the long term, and it would strengthen unity among its citizens, who would finally be subject to the same rights and duties. By taking coordinated measures of budgetary discipline while promoting the necessary growth of our economies, the Eurozone would arm itself with converging rules, and would give a clear and strong signal of its willingness to strengthen integration", continued Joseph Daul.
Joseph Daul said: "Our citizens, although they are aware that this European crisis calls for a European response, not just a national response, are still questioning the capacity of national and European leaders to put an end to this crisis of confidence and low growth. What's at stake in the next three months is Europe's capacity to get back on the path to growth and employment, to preserve its way of life and defend its values. Only with a major act of integration will we finally be able to live up to the challenges", concluded Joseph Daul.
2 comments:
Euro bonds aren’t necessary to contain the crisis: Better, more targeted solutions are available. And they aren’t suitable for achieving institutional reforms, which should be separate from short-term measures, and designed to strengthen the long- term viability and resilience of the euro zone’s economic and political structures.
In this regard, these securities are a bad idea not because they would provide transfers to weaker member states, as is often pointed out, but because the transfers would be neither transparent nor controllable. Indeed, euro bonds would cement Europe’s structural problems.
Any lasting solution must clearly distinguish between illiquidity, insolvency and structural deficiencies, and should address each in a transparent manner, considering the political processes involved. By contrast, the euro bond proposals fail to differentiate between these issues and, as a result, hurt transparency and incentives.
The European commission has cut its 2011 growth forecast for the UK to just 1.1%, as it warned that output across the troubled eurozone will come to a virtual standstill by the end of the year.
Brussels said a slowdown in the global economy and the impact of the sovereign debt crisis affecting the single currency would weaken Britain's economic activity in the second half of the year.
Following the meagre 0.2% rise in output in the nine months to June 2011, the commission said it was cutting its growth forecast for the UK economy from the previous estimate of 1.7%.
George Osborne has already admitted that he will be forced to lower his own growth estimates for the UK from 1.7% when he makes his autumn statement on the economy in late November. Thursday's report from the commission chimes with the view of many analysts in the City.
Brussels said it still expected growth in the eurozone to be 1.6% this year, with stronger than anticipated activity in the first half of 2011 providing a cushion for a slowdown in the second half of the year.
"The outlook for the European economy has deteriorated. Recoveries from financial crises are often slow and bumpy," economic and monetary affairs commissioner Olli Rehn said.
"The EU economy is affected by a more difficult external environment, while domestic demand remains subdued. The sovereign debt crisis has worsened, and the financial market turmoil is set to dampen the real economy," he added.
In its half-yearly forecasts, the commission said Germany would act as the main engine for eurozone growth, with Europe's biggest economy now expected to expand by 2.9% this year, up on the previous 2.6% forecast. Growth in France, the Netherlands and Italy will, however, be weaker than envisaged.
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