Commission criticises lack of euro unity on 10th anniversary

Celebrating the euro’s 10th jubilee, the Commission praised the single currency’s successes but lamented the eurozone’s lack of a single voice in the global arena. Meanwhile, Slovakia was given the green light to adopt the euro in 2009, despite concerns over its ability to restrain inflation.

Presenting progress reports on the euro to MEPs on 7 May, Economic and Monetary Affairs Commissioner Joaquin Almunia called the single currency a “resounding success”, saying it has “delivered sustained price stability on a scale that many, if not all, had never previously enjoyed”. 

He also argued that the current 15 members of the eurozone had enjoyed a remarkable job growth, outpacing other mature economies with more favourable demographies like the US “by far”. As for the future, Almunia expected the countries with problems “to be the ones outside the eurozone”. 

MEPs shared the Commisssion’s overall positive assessments of the euro’s achievements, but also agreed with Almunia’s remarks regarding its shortcomings. 

German Liberal MEP and economic and monetary affairs committee memeber Wolf Klinz picked up on the Commission’s criticism that the eurozone has no individual representation at international institutions, such as the OECD or the IMF, calling for its profile to be raised so it can “be taken more seriously”.

The Commission report notably blamed the larger euro countries like Germany, France and Italy for this deficiency, saying they are not pushing for such a step as “they may fear a loss of influence from a consolidation of chairs”. He said they preferred their participation to “remain in the realm of their national foreign economic policy”. 

Almunia stressed the necessity of a stronger and more united presence of the euro members in the international arena, saying “long-term trends in the world economy and in particular the rising weight of the euro area are likely to further weaken the influence of euro area countries in international financial institutions and fora”. 

But a senior Commission official told the Financial Times that it was “ambitious” to call for a single eurozone seat in global institutions, acknowledging that this would “not be for today, tomorrow or probably the day after either […] We have to see it as a medium- to long-term goal because otherwise we’re a political dwarf and an economic giant”. 

The report also criticised the fact that “the euro is often used as a scapegoat for poor economic performances that in reality result from inappropriate economic policies at the national level”. 

Another concern voiced by MEPs – including the French Socialist chairwoman of the economic and monetary affairs committee Pervence Berès – was the attempt by some politicians to undermine the the European Central Bank’s independence, a note clearly directed at French President Nicolas Sarkozy (EURACTIV 12/02/08).

Meanwhile, the Commission gave its approval to Slovakia joining the euro zone on 1 January 2009, stating it “achieved a high degree of sustainable economic convergence”. EU finance ministers are due confirm the Commission’s decision to admit Slovakia to the euro zone at their July meeting. 

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