13 December 2011

Saving the euro: MEPs debate latest European Council deal

MEPs  welcomed the agreement, but warned that in order to restore the trust of citizens the EU should also focus on growth. There was a lively exchange of views on the subject of the British veto that led the rest of the Member States to opt for a new treaty.

European Council President, Herman Van Rompuy, noted that restoring confidence in the euro had been more difficult than anyone had expected. He regretted the intergovernmental nature of the new treaty on the fiscal compact and the fact that not all Member States had supported the agreement, but reminded MEPs that this is not the first time some EU members have moved ahead with an intergovernmental agreement that later turned into EU law (for example the Schengen agreement).

European Commission president, José Manuel Barroso, said the deal underlined the irreversibility of the common currency and was a firm commitment to the euro. But  the fiscal compact is not enough, growth and employment are key to restoring the confidence of citizens and investors, he said. The new treaty on fiscal union will not replace, but build on EU institutions, he added, reiterating support for eurobonds to build a stronger, more liquid EU bond market.

Centre-right EPP leader, Joseph Daul, said: "26 out of 27 countries showed that shared sovereignty is better than sovereignty taken hostage by the markets". Unfortunately, "the result is not community based as we wanted but intergovernmental", he added, noting that the EP has a role as the guarantor of democratic legitimacy. Questioning the future of the UK budget rebate, Daul said: "If the UK's solidarity towards the other 26 is being abandoned, I do not see why the others should show solidarity to the UK. Solidarity must work in both directions."

"The UK Prime Minister didn't want more regulation of financial markets, which is not acceptable, because the financial markets, the speculators in the City of London are those who have driven us into the crisis", according to Socialist leader, Martin Schulz. He said that the EP should make alternative suggestions on how to ensure stability in Europe, including more growth and employment.

Liberal leader, Guy Verhofstadt, said the agreement by leaders puts an end to German and French ambitions to run the eurozone. "Discipline without solidarity is not the true expression of a union", he said, criticising the focus solely on budget deficits.

For the Greens, Rebecca Harms was also critical, saying the summit had no answers to the acute questions of the crisis; it was a denial of reality and of democracy.

"We can hardly call the summit a success. There were no immediate steps taken to calm the markets and no proposals for growth. We have seen a Europe more divided than before", ECR leader, Jan Zahradil, said. "Even the 17 eurozone countries are divided into two parts: those who will pay and those who will be paid." He defended British Prime Minister, David Cameron, as "only defending national interests".

There was no breakthrough at the summit, GUE/NGL leader Lothar Bisky said. "We should introduce a financial transaction tax and ban dangerous financial products", he added. Neoliberal policies such as privatisation and the redistribution of wealth upwards caused the crisis, austerity won't lead to growth, he said.

EFD leader, Nigel Farage, said: "Something changed on Friday: Britain is going to make the great escape". He added: "Cameron has unleashed an unstoppable momentum for a referendum" on EU membership.

Press release

© European Parliament