|
|
Reform will only work if it is – and is seen as being – fair. In some parts of Europe we are seeing a real social emergency. I do not agree with those who say that the European social model is dead. An effective welfare protection system that helps those in need is not a hindrance to prosperity.
The crisis has shown the clear need to complete the economic and monetary union. The stability of the single currency is in the interests of those who use it and those who do not. The crisis has shown that when banks became transnational, rules and oversight remained national. Then when things went wrong, taxpayers had to pick up the bill. This week we have proposed a single supervisory mechanism for the euro area. This is a huge step towards a banking union.
This supervisory system in the euro area will be led by the European Central Bank. This is logical. 14 of the 17 national supervisors in the euro area today are already central banks, and indeed the UK is moving now to give these tasks to the Bank of England.
The single supervisory mechanism will strengthen, not divide, the single market. The single rulebook, the substantive rules on bank capital requirements and so on, will be agreed by all 27 Member States, with the UK continuing to play a leading role. It is worth remembering that the UK has never been outvoted on a financial markets measure. Better application of the common rules within the euro area has to be good news for the stability and safety of financial markets across the EU.
The European Banking Authority, based in London, will keep all its powers to solve disputes and uphold single market rules also vis-à-vis the ECB. There will be changes to the EBA voting system to ensure that decision-making is balanced and ensure a fair say for everyone, whether they are in the euro area or not. No one is more committed than the European commission to making sure no new walls are built in the EU.
I have said that we will need more shared sovereignty in a way that each country and each citizen are better equipped to control their own destiny. This is about the union with the Member States, not against the Member States. In the age of globalisation pooled sovereignty means more power, not less. So when I call for a federation of nation states, it should not be seen as a threat to national democracies. As a former prime minister of my own country, I certainly do not want to see a European superstate. I believe in a Europe where people are proud of their nations, but also proud to be European.
Europe also has to be more democratic. Before the next European parliament elections in June 2014, the commission will present its ideas on the future European union. We will put forward explicit ideas for treaty change so that when people go to the polls they can take an informed view on where they want to see Europe heading.
Deeper integration is indispensable for the countries who share the euro as their common currency. It should also be open to – but not forced on – other Member States. I strongly believe that we must not allow the populists and the nationalists to set a negative agenda on Europe. I urge all those who call themselves Europeans – not least in the UK – to stand up and take the initiative.