When it comes to priorities for 2012, European ambassadors are reluctant to talk about the immediate future, which they see as too volatile.
But those who attempt to cast some light over the big unknowns for 2012 converge on underlining the critical situation of Europe’s budgets, crunched by the eurozone crisis and related austerity measures, while stressing that actions taken will make the EU stronger and that a two or multispeed Europe is not in the books for now.
“There is no doubt that 2012 will be a crucial year for Europe to deliver a credible and sustainable solution to the sovereign debt crisis, which represents a major threat to the stability and integrity of the economic and monetary Union,” Ferdinando Nelli Feroci, permanent representative of Italy to the EU, said in an interview with EurActiv.
Faced with a British veto, EU leaders meeting at the European Summit on 8-9 December agreed to tighten fiscal discipline in the eurozone through a new intergovernmental treaty, due to be finalised by the end of the month and signed in March.
“The agreement on a reinforced economic union should be ambitious and effective not only in strengthening discipline but also in promoting conditions for stronger economic growth,” the Italian ambassador said.
But he insists that the agreement should be “inclusive, reaching out to all member states and respectful of the integrity of the EU institutional framework.
“The prospects of a ‘multi-speed Europe’ represents, in our view, a scenario that should be avoided,” argued Nelli Feroci.
Jan Store, Finland’s permanent representative, concurs that the agreement is an important part of the EU toolkit to respond to the current economic crisis. “All these different measures will make us stronger and also better prepared for the future,” he said.
Irrespective of its ratification by the 26, the new agreement is not an amendment to the Lisbon Treaty, but a new intergovernmental accord intended to strengthen market confidence, said Richard Cachia Caruana, the Maltese ambassador to the EU, and only through responsible implementation of all the tools agreed - including the European Stability Mechanism (ESM) – will the EU succeed in showing leadership and re-building confidence.
“No treaty by itself can put an end to a crisis,” said Ilze Juhansone, Latvia’s permanent representative to the EU, unless member states put in place a binding and rigorous discipline regime to avoid spending more money than they have.
The agreement struck by EU leaders in December is considered by many ambassadors as a middle and long-term tool. “It is also clear that the EU will need new, concrete and immediate measures to cope with the crisis in the short-term to help its most troubled members,” added Raimundas Karobolis, Lithuania’s permanent representative.
“The treaty is another building block of the EU’s determination to do whatever it takes to ensure the stability of the common currency,” Estonia's permanent representative, Matti Maasikas, told EurActiv.
In general, EU ambassadors seem to think the intergovernmental treaty, which is mostly targeted at the eurozone members, might become attractive to the 27 member states, as long as it remains open to all and that is proves useful and effective.
“Small steps have grown big before, as the Schengen and Prüm," said Manuel Lobo Antunes, permanent representative of Portugal to the EU. He was referring to the treaty signed in 1985 to create a borderless area, and the 2005 pact on police cooperation that initially involved just a few countries.
“Either way, the EU will have to think creatively and act pragmatically for the good of all its member states,” the Portuguese envoy said.
Balancing act on new EU budget
Creativity and pragmatism seems to be the leitmotiv also for the upcoming negotiations on the next Multiannual Financial Framework (MFF) - the EU's budget - which are due to enter into a decisive phase in the coming months with a deal expected by year's end.
“The negotiations will be a very delicate balancing act,” concedes Finnish Permanent Representative Jan Store, stressing that they should reflect the difficult situation of public finances and strengthen preconditions for growth and employment.
Germany, which contributes around 20% of the EU budget, will play a decisive role in the negotiations and probably stress more than ever the need for strict budgetary discipline, against the backdrop of budget strains in nearly all EU countries.
Berlin has repeated that to ensure fairness in the allocations of member states' financial contributions and to engender the acceptance of European spending, it is essential that the large contributors be on the same level – that is, that the financial burdens placed on the economically stronger member states are comparable and that changes in the expenditure column must be balanced by corrective measures in the EU's own resources.
No doubt negotiations will be difficult, said Estonia’s ambassador, noting that it is hard to argue for an increase or maintain the level the EU allocation in time of austerity or budget consolidation.
“Nevertheless, the EU budget is mainly a budget of investments and a balance must be found between the current financial restraints and the investment needs for the EU policies,” Maasikas said.
Portugal’s permanent representative stressed that adequate financial resources at the EU level must be secured, otherwise “we risk jeopardising the convergence path on which the MFF is supposed to keep us all.”
“Without solidarity and economic and social cohesion, we will fail to achieve a more competitive Europe, both internally and in the international scene. But I am confident that our political leaders will rise to the challenge,” said Lobo Antunes.
EU ambassadors spoke to EurActiv Managing Editor Daniela Vincenti. Click here to read the interviews.
