No more breaking the ranks

European states and community institutions are looking for the magic spells that will help them address the multifarious issues on the table. No issue – ranging from the financial crisis to national budget instability, from migratory and political measures linked to the situation in Africa and in the Middle East to domestic security and energy purveyance – is nearing a resolution. Perhaps that’s also the reason why EU Commission, Council and Parliament, the latter holding its plenary in Strasbourg this week, are looking for more efficient forms of cooperation. The stakes are too high to afford breaking ranks, although misunderstandings and closures linger on, such as the questions raised by some Member States on the Multiannual Financial Framework of the EU. Rescuing the euro. Over the past weeks Europe has been concerned, and justly so, over the inability of Greece, Ireland, and Portugal to handle their financial obligations. EU aid was extended to those countries (Greece remains the most serious situation), along with Italy and Spain, with ECB’s securities project. But the proposal of rigorous budgetary surveillance, largely requested and urged, was shattered by various fronts, the latest being caused by the resignations of Jürgen Starck, chief economist of the ECB, who argued against a second bailout for Greece according to monetary laws. German Chancellor Angela Merkel is well aware of how much the support to eurozone states in crisis is costing Europe, but at the same time the German Chancellor acknowledges that one country’s bankruptcy, Greece’s today and another State’s tomorrow, or the collapse of the euro currency, would have devastating consequences even on Germany and on the EU as a whole, severely impacting global financial markets. National budgets. These issues are being discussed – albeit with fatigue -. And once again EU leaders have conveyed unequivocal messages: to hasten the completion of a “Rescue-fund”, to implement national measures for austerity, to envision new -urgent – solutions for growth and employment. This concept is reiterated in the Report on Public Finances presented on September 12 by the European Commission. It states that EU Member States, facing market pressure “must continue to deliver on reaching their fiscal targets, and take additional measures if needed”, notably as relates to national debt and deficit. Indeed, EU27 activities are necessarily being performed within a negative framework as regards real economy: “A slow and tentative recovery is under way” while “consolidation measures may have lasting implications on public finances over next years”.EU funds. Also because of the grave macro-financial framework, the debate on the 2014-2020 multiannual budget is stagnating within EU institutions. After the proposal by the Commission, the issue was debated in EU seats and is timetabled for discussion in the EP plenary of September 12-15. But a letter, signed by 8 states, has deadlocked all upcoming debates. In a joint letter Germany, France, Great Britain, Italy, The Netherlands, Austria, Finland and Sweden request to freeze available EU funds. At the same time, they demand that the European Union fully perform all the tasks it was entrusted by member states. The picture presented by the College chaired by José Manuel Barroso was appreciated by the Parliament (the Commission proposes the budget, while the European Council and the European Parliament must approve it), but the Council, representing EU27 governments, argued against the increase in the seven year budget – amounting to one billion euro, 1% of Europe’s GDP – for being too high. The Commission’s proposal, state the eight dissenting EU Ministers, “comes at a time Member States are making considerable financial efforts to support Europe and at the same time are undertaking tough consolidation efforts. European public spending cannot be exempt from these considerable national efforts. The new MFF “should not lead to an increase in national contributions to the EU budget”. By paradox, the national leaders, some of whom have serious “home budget” problems, claimed: “We need to spend better, not to spend more”.Foreign affairs and security. Other items are on the agenda of the Union, notably pertaining to foreign affairs (the EU Parliament tabled a set of topics for debate, such as relations with developing African countries and Eastern partnership). Security is a topically relevant issue, also in the framework of immigrant landings on Mediterranean shores, the attacks in Norway and tenth anniversary of 9/11. It’s not by coincidence that a few days ago Commissioner for Home Affairs Cecilia Malmström, launched the “Radicalisation Awareness Network” which “aims to counter violent extremism”.