Articles
EU special summit meeting emphasises shared responsibility
Thu, 11.02.2010
Photo: REGIERUNGonline/Bergmann
Chancellor Angela Merkel in Brussels
Over the next ten years the European Union aims to become the leading economic area worldwide with robust growth. Chancellor Angela Merkel called for a new, visionary concept of growth, geared to the principles of sustainability. Also on the agenda in Brussels was the stabilisation of the Greek economy.
The new European strategy for growth (EU 2020) follows on from the Lisbon strategy pursued to date. Ten years ago the member states of the European Union adopted the ambitious plan to make Europe the most competitive and dynamic knowledge-based economic area in the world. Not all goals of the Lisbon strategy were realised within the time-scale originally planned, however.
At the special summit meeting the heads of state and government exchanged views on a new strategy for the first time. What goals should be set for 2020? How can the Union anchor the strategy in member states and who should steer the process? The main aim is to strengthen economic potential, say by investing more in research and technology and with the help of coordinated employment policy.
Recovery and green growth
In terms of their economic goals, the member states intend to concentrate on a few points in future, explained the Chancellor. The Union also intends to monitor progress towards these goals in the individual member states more closely than has hitherto been the case.
One thing is clear already. The focus will be on recovering from the global economic crisis. The new growth, however, is to be sustainable, innovative and "greener". In this way the Union hopes to emerge stronger from the crisis. At the end of March the EU will discuss the proposals for the strategy once more, and by the summer the EU 2020 is to be signed, sealed and delivered.
Taking account of the global framework
Photo: REGIERUNGonline/Bergmann
Angela Merkel and Nicolas Sarkozy - united in a united EuropeAt international level, Europe must be the "driving force for a new global financial architecture" demanded Angela Merkel. Germany and France are prepared to lead the way. "We have made it quite clear that we have ambitious goals," she said looking forward to the coming French Presidency of the G20.Nicolas Sarkozy also emphasised the special responsibility of France and Germany, as the largest countries of the EU. The two governments are in "absolute agreement" at European and international level, he said.
Stability for Greece
In response to current events, the special summit meeting also discussed measures to stabilise Greece.
The Greek government is facing a massive budget deficit: 12.7 percent new debt last year. The European Growth and Stability Pact allows for a maximum of three percent. As a result of the economic crisis, most of the 27 EU member states, including Germany, have exceeded this limit since 2008.
In a joint statement the European Union expressed its support for the commitment of Greece to do whatever is necessary to cut its dramatic debts. The heads of state and government called on the Greek government to take swift and resolute action to reduce the country’s double-digit deficit by at least four percentage points this year.
In Brussels the Greek Prime Minister Georgios Papandreou presented new plans as to how his country intends to avert bankruptcy independently. The European Union partners pledged their support for Greece in the implementation of these ambitious goals. Details are to be laid down in the next few weeks by the EU finance ministers.
Shared responsibility
It also became clear, however, that the eurozone countries stand by their shared responsibility for the common currency. "Greece will not be left alone", the Chancellor underscored at the start of the meeting. "We are aware of our responsibility – we belong together," she added.
At the same time she spoke of a "very clear signal", which the partners and the Greek government sent together – a clear affirmation of their commitment to the Stability Pact of the eurozone on one hand and to mutual solidarity on the other. "The rules must be obeyed – but Greece is one of us", said Angela Merkel.
With the support of the European Central Bank and the International Monetary Fund, the government in Athens must now do everything in its power to put its positive plans into practice. The financial markets must regain confidence in the Greek state. The importance of confidence for properly functioning markets became clear during the economic crisis when the Europeans responded positively and as one, Angela Merkel recalled.
The euro is at stake
"If necessary, the member states of the euro area will take determined and coordinated action in order to protect the financial stability of the euro area as a whole," declared the Permanent President of the European Council Herman Van Rompuy, speaking in Brussels during the EU summit. At the same time he made it clear that the Greek government had not requested financial assistance at this time.
Together the EU Commission, the European Central Bank and the International Monetary Fund will monitor the way the Greek government puts into practice the recommendations and plans. In March they will investigate whether or not the measures taken are having the desired effect – a reflection of their shared responsibility for the economic and financial stability of the euro area.
