Restoring confidence

For the President of the European Commission José Manuel Durão Barroso, in order to overcome the ongoing economic and financial crisis, Europe is called to be more united, coherent, inclusive and cooperative, as conveyed in his Lectio Magistralis, delivered in Rome on March 14 at the ‘Guido Carli’ Social Studies Faculty of LUISS University, upon the presentation of a Honoris Causa Degree in Law by the Atheneum.A crisis in confidence. According to the president of the European Commission, “we have come a long way on reinforcing economic governance in the European Union against the backdrop of the crisis” but “a lot remains to be done”. Indeed, the European Union “is not only based on economics”, “as a true political union it is mostly based on values, like peace, freedom, justice”. In analyzing the impact of the crisis on society, Barroso said it has been “a huge shock for millions of citizens”. “Much of the progress made in the past ten years has been wiped out: Our GDP fell by 4% in 2009, our industrial production dropped 20% in less than two years, and the rate of unemployment rose to 10% of our active population. The crisis has made the task of securing future economic growth much more difficult. Europe’s structural weaknesses have been uncovered”. Moreover, according to the president of the EU Executive, “The impact of the crisis has also been a serious blow to confidence”.Responsibility and solidarity. Today, he remarked, “European economic recovery is taking shape amid better prospects for the global economy. The recovery is expected to become more balanced. However, “uncertainties remain high and the recovery is still fragile and uneven among EU Member States. Our efforts cannot flinch”. In particular, Barroso pointed out, “we need consumers and investors to recover confidence, which underlies the European project”. According to the president of the EU Executive, “It’s still a work in progress. We have come a long way in terms of economic growth, competitiveness and stability. It is an amazing progress against the backdrop of the crisis, or perhaps because of the crisis”. Barroso recalled “the perplexities and reluctance” of a number of governments vis à vis shared governance, and pointed out that “today markets demand that Europe be more cohesive”. “We have understood and agreed that our response to the crisis has to be comprehensive and clearly coordinated at European Union level, while being adapted to each Member States’ diverse situation”. It is a combination of “responsibility and solidarity”. “We have started rebuilding confidence through fiscal consolidation efforts combined with structural reforms, financial stabilisation measures and strengthened economic governance. These collective efforts would have been unthinkable only two years ago”.Peace, freedom and justice. For Barroso “We need to keep the momentum and a sense of urgency to fully deliver on our comprehensive response to the crisis”. The key word is “recovering confidence, to boost growth and jobs creation”. In this framework, he warned, “to invest in sectors of importance for the future, like research and innovation, education and culture, is just as necessary”. Barroso recalled, “last Friday (March 11, ed.’s note) euro area Leaders have agreed on a Pact for the Euro, which should be formally adopted at the next European Council. This Pact is fully in line with the Treaty”. Indeed, Barroso added, “the Pact is open to non-Euro area members if they so wish”, but “it is relevant for the whole of Europe”. This “is not a closed club”. “It is a dynamic process, a process of inclusion and solidarity”. We must do more “to promote growth especially in parts of Europe where economic conditions are weak”. “The European Union – he underlined -is not only based on economics, but as a true political Union it is based on values, like peace, freedom, justice that people of the South Mediterranean countries are fighting for”. He remarked: “the European Union should make it clear that we stand for values and our neighbours on the other side of the Mediterranean Sea may count on us for democracy and shared prosperity”. Addressing the ongoing situation in Libya, Barroso told journalists: “We are jointly valuing possible options with our partners. And we have welcomed the Arab League’s declaration”. For the head of the EU Commission “it should be understood that “military intervention”, if carried out, would “not be directed against the local populations”. As regards the devastating tsunami in Japan, Barroso remarked that “humanitarian emergency” is a priority. “We are sending out staff members. It’s still early to establish the economic consequences”. “At present our efforts are primarily devoted to contain the humanitarian crisis”.