05 February 2013

François Hollande: "I refuse to condemn Europe to austerity without end"

No respite

Mr Hollande said there are still lessons to be learnt from the eurozone crisis. "There can be no respite as long as one out of two people is out of work in some countries." The French president argued for initiatives to promote growth and better coordination of economic policies in order to strengthen the EU's economy, adding: "I refuse to condemn Europe to austerity without end".

He called for an EU budget that includes savings that do not weaken the economy, has sufficient money earmarked for agriculture and support for poorer regions, while still promoting innovation and protecting the most vulnerable.

Crisis not over

José Manuel Barroso, president of the European Commission, warned:  "The crisis is not over yet. The unemployment rate is unacceptable. The reform of our competitiveness is crucial. In order to guarantee a sustainable growth we need investment and the instrument for that is the EU's budget."

Need for change

In the debate with Mr Hollande, MEPs discussed the role of the EU's budget and what changes would be necessary to revive Europe's economy.

Jospeh Daul, the French leader of the EPP group, spoke out against the Council proposals for the EU's next long-term budget: "These proposals are going in the wrong direction, attacking one of our best tools to generate growth - the European budget - of which 94 per cent goes back to the Member States. The proposal we have today is a political capitulation and we are going to reject it."

Hannes Swoboda, the Austrian leader of the S&D group, said: "The cost of unemployment is extraordinary. We have a growth pack, but we now need to flesh it out to create jobs. Europe needs a balanced, forward-looking approach."

A solution in times of austerity could be to pool resources better in areas such as defence and innovation, according to Guy Verhofstadt, the Belgian leader of the ALDE group. He added: "Europe has no future unless we move towards a federation".

Daniel Cohn-Bendit, the French co-chair of the Green group, also stressed the importance of a good budget: "As there is a recession in the Member States, we need an EU budget that can reinvigorate those economies".

Martin Callanan, the British chair of the ECR group, questioned Mr Hollande's ideas about the single market: "For you the single market means harmonised labour rules, taxes and economic policies. For me, it means competing with each other to become more competitive in the international market."

Philippe De Villiers, the French vice-chair of the EFD group, commented: "People no longer share your dream of bringing together and integrating Europe's nations. Today the public is moving away from it."

Gabriele Zimmer, the German chair of the GUE/NGL group, said: "Austerity leads to loss in growth. Austerity and wage restraint is toxic."

Press release

See also Barroso: Débat en session plénière avec le Président de la République française, François Hollande: "Le futur de l'Union européenne"

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