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"Something is changing here, under the pressure of the financial crisis. We are realising now that the euro completely changed the nature of the Union. That it was a game changer. Up until then, Europe was often spoken of in idealistic, abstract terms; and even when its concrete achievements affected people's lives, it was always in positive terms.
With the euro crisis, for the first time, citizens are confronted with the hard fact that some costs come alongside the benefits. For instance the costs and efforts to defend our currency after the financial crisis. They're also realising now for the first time that they are in this together. That what happens in another country – with banks, bubbles or budgets – affects them too.
I strongly disagree with those who conclude hastily that the crisis has killed solidarity between European countries. Not at all! The crisis has revealed what it takes to be in a Union. In fact this is the very first real test of solidarity in the history of the Union!"
"I should like to give you some concrete reasons why I am confident that we will get there. There are three.
First: EU leaders have reached a final understanding on an important aspect of the crisis, its systemic nature. They all recognise now that the crisis is not only the sum of the problems of individual countries, but also the result of deficiencies in the architecture of the Economic and Monetary Union as a whole. We Europeans had given ourselves a common currency without the means to defend it. We relied mainly on rules without the means and tools to enforce them, or to manage a crisis. We dramatically deepened our economic and financial interdependence but without drawing all the political consequences. Clearly, over the past two years, we addressed some of the most obvious deficiencies. But now we need to take a qualitative jump.
What has changed in the past few months – I would say between March and June – is the determination to go to the heart of the matter. All eurozone leaders are now putting every issue on the table, without taboos. It is urgent, yet we must do this properly. It cannot be a quick fix. All leaders also recognise that we cannot solve our short-term problems without addressing the longer-term challenges. Indeed, if we want investors to buy 10-year government bonds, we need to show them where we want the eurozone to be in 10 years time… And if we want our citizens to support decisions which for many entail a period of sacrifices, hardship and costs, we must convince them that these efforts are worthwhile, that things are going to get better. We will be judged on our results.
So we have a chance to finish a house half built. It is our historic duty to seize it.
Let me first come to the second reason why I am confident we will overcome the crisis: the Member States are carrying out ambitious economic reforms, that are producing results. It is a not only a matter of making up for the excesses of the past, but also of adapting to an ever more competitive world. In a way: a test of responsibility. These structural reforms are key for the economic future of our countries, to secure growth and create jobs. And the work has to be done: euro or no euro, EU or no EU...
A third reason to have confidence we will get there: whilst these reforms are underway, Europe stands ready to help when help is needed. The high risk premia for some countries are not always justified and can be disconnected from economic fundamentals and reform efforts – and I speak mildly when I speak in those terms. Even the historically low interest rates in some countries are too low…!
And the high risk premia can have negative repercussions for the stability of the eurozone as a whole. For such cases, we have tools and a clear political commitment to do more. In June, eurozone leaders affirmed that they were ready to use existing instruments in a flexible and efficient manner. At the same meeting, we also realised a breakthrough towards a banking union. And two days ago, the European Central Bank presented a framework under which substantial action can be taken provided Member States carry on their adjustment efforts.
So we have a triptych: short-term actions to safeguard financial stability, a long-term vision for the Economic and Monetary Union, and deep reforms in each and every country, and this triptych makes the euro irreversible. And all European leaders and institutions share a commitment to its integrity too. So long as Greece is committed to the euro, its partners will continue to fully support its efforts."
"We are working hard on a long-term plan, while also dealing with the immediate effects of the crisis every single day. And I insist: in no way is this just a question of technical problem solving, it is just as much – and even more so – a work of political conviction. It is about the choice in which Europe we want to live. Just listen to all those voices in the euro debates these days across European countries. Beyond acronyms and jargon – EFSF, ESM, OMT and all the rest – the talk is about what is fair, about responsibility, solidarity, about being – yes or no – part of a wider European community beyond your own national borders."
Statement after working luncheon with Mario Monti