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30 November 2011

Speech by Herman Van Rompuy, President of the European Council, at the Annual Conference of EU Ambassadors


As he elaborated on the Council decisions from October 26-27, Mr Van Rompuy stressed that remaining credible is the key to the whole problem of the eurozone crisis.

"We are getting to the core of the matter. It is this: the systemic crisis needs a systemic answer. We need a significant step forward towards a real economic union commensurate with our monetary union. We need to offer our citizens and the investors a direction for the future that brings back confidence. We have to show that the euro is an irreversible project.

"There is a certain number of short-term risks to deal with. By individual Member States and by the Union as a whole. The countries perceived as the most vulnerable are addressing their weaknesses resolutely and implementing strong and sound policies. New governments in Italy, Greece and Spain deserve our full confidence.

"Firstly, as regards economic convergence, we need to examine for instance whether to go beyond the so-called "six pack" in terms of further macro-economic surveillance, and how to strengthen the Euro Plus Pact.

"Secondly, in terms of fiscal discipline, should we go further in terms of the automaticity of the sanctions provided for under the Excessive Deficit Procedure? Should we provide, in extreme cases, for further sanctions (such as a suspension of voting rights or structural funds) or power for a central authority to intervene in national budgetary procedures?

Thirdly and finally, in terms of economic union, is there a need for harmonisation in certain areas such as taxation or even some social fields? Should there be a form of mutualisation of public debt? What further regulations are needed for the financial sector?

"All these questions are interlinked. Changes in one aspect cannot always be assessed independently of changes in others. In any case, the crisis in the euro area does require us to do more. We have come a long way from the empty or de-credibilised tool-box I discovered when I took office two years ago. But we now need to go further, and we need both fiscal discipline and economic and fiscal integration focused on economic growth. Not only to punish the "sinners" but also to link our policies. To demonstrate that we share a common destiny."

Full speech



© European Council


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