EurActiv Logo
EU news & policy debates
- across languages -
Click here for EU news »
EurActiv.com Network

BROWSE ALL SECTIONS

Socialists, centre-right quibble over eurozone reforms

Printer-friendly version
Send by email
Published 07 March 2011, updated 10 March 2011

Meeting in Helsinki late on Saturday (5 March), leaders from the centre-right European People's Party (EPP) derided the absence of two of the four centre-left Party of European Socialists (PES) prime ministers from an alternative summit held simultaneously in Athens.

Chairing the summit in Helsinki, EPP leader Wilfried Martens pointed to the absence from the alternative forum in Athens of Spanish Prime Minister José Luis Rodríguez Zapatero and his Portuguese colleague José Sócrates.

"I […] hope that the socialist prime ministers in the EU will be willing to consider our proposals, since most opted not to endorse [by their absence] the populist positions announced at the meeting of second-tier socialist politicians in Athens yesterday," Martens said.

The EPP summit was attended by eight EU heads of state or government, including German Chancellor Angela Merkel and Italian Prime Minister Silvio Berlusconi. The EPP has in total 15 heads of state or government in the 27-member bloc.

On the PES side, George Papandreou, the host of the Athens meeting, and Austrian Chancellor Werner Faymann were the only centre-left party leaders at the summit to head a government.

Representatives of all the EU institutions, meanwhile, were present in Helsinki: European Commission President José Manuel Barroso, Council President Herman Van Rompuy, European Parliament President Jerzy Buzek, and EU Council President and Hungarian Prime Minister Viktor Orbán.

However, neither French President Nicolas Sarkozy nor François Fillon, his prime minister, attended the EPP meeting. Polish and Swedish Prime Minsters Donald Tusk and Fredrik Reinfeldt were also absent.

Both summits adopted five-point conclusions. However, they widely contrasted one another in scope, with the EPP text concentrating on issues close to the agenda of the 24-25 March summit (see 'Background'), while the PES document focused on more idealistic goals, such as job creation and delivering social progress.

The EPP leaders agreed to strengthen the European Financial Stability Mechanism, to put in place in June 2013 its permanent replacement, the European Stability Mechanism, and to adopt a legislative package on improved governance before the beginning of 2012. They also endorsed Merkel and Sarkozy's plans on a 'Pact for Competitiveness' and reinforcing the Stability and Growth Pact, including by the introduction of a clear sanction mechanism.

The centre-left summit agreed that non-euro area member states should be invited to participate in all these measures on a voluntary basis.

Alternatively, PES leaders supported the idea of competitiveness, but insisted that it could not be achieved by cutting wages and social standards. They called for a European Employment and Social Progress Pact for fair growth, designed to create "new and better jobs" and fight inequalities.

Centre-left leaders called for the creation of new fiscal instruments, such as a financial transactions tax and a carbon tax, as well as for new revenue to finance job-creating investment.

PES leaders also called for financial support packages already granted to countries in financial difficulty - such as Greece and Ireland - to be renegotiated, for interest rates on loans to be lowered and for more time to be given to repay the loans.

Positions: 

Greek opposition New Democracy party leader Antonis Samaras said that the Helsinki summit had discussed the developments in North Africa and the Middle East.

"I stressed mainly that Europe must not run behind the events. It must be the first to show substantive, economic, diplomatic and, above all, political solidarity to these countries. And on the other hand Europe itself must obtain a common, its own, policy on immigration, security, repatriation and prevention. Because this crisis must not in any way worsen the internal economic crisis that countries such as Greece as well are facing," Samaras said.

BusinessEurope sent a letter to European Council President Herman Van Rompuy reiterating its support for the euro and its stability. "The euro area is still in crisis mode and should give priority to reinforcing crisis management instruments," reads the letter.

Among the factors it cites as essential for a more stable currency are fiscal sustainability, labour mobility and employability, wage and cost competitiveness, market adaptability and financial stability.

A competitiveness pact, the letter continues, "must ensure consistency in cross-border arrangements to preserve market integration and bolster the functioning of the single market for the European Union as a whole".

BusinessEurope suggests giving a prominent role to the Commission to limit the room for "bargaining between member states".

The business organisation sent a similar letter to European Commission President José Manuel Barroso.

Next steps: 
  • 11 March: Summit of eurozone leaders to discuss economic reforms.
  • 24-25 March: EU summit aimed at agreeing on competitiveness targets and on a permanent eurozone bailout fund.
EPP dinner in Helsinki
Background: 

The EPP and PES summits took place in preparation of an 11 March eurozone meeting in Brussels, at which eurozone leaders will discuss reforms ahead of a 24-25 March EU summit aimed at agreeing on competitiveness targets and on a permanent eurozone bailout fund.

At the last EU summit, German Chancellor Angela Merkel and French President Nicolas Sarkozy tabled a six-point Competitiveness Pact aimed at harmonising tax and labour policies in the euro zone, saying the crisis had exposed the necessity to complete monetary union with an economic union.

Weeks later, European Commission President José Manuel Barroso and his counterpart at the European Council, Herman Van Rompuy, distributed a paper outlining new competitiveness targets.

The Van Rompuy-Barroso pact is being kept under lock and key but sources indicate that it is substantially more flexible than the Merkel-Sarkozy plan.

More on this topic

More in this section

Advertising

Videos

EU Treaty and Institutions News

Euractiv Sidebar Video Player for use in section aware blocks.

EU Treaty and Institutions Promoted

Euractiv Sidebar Video Player for use in section aware blocks.

Advertising

Advertising