Decisions and delays

According to the agenda of the latest European Council heads of government and state were scheduled to debate the details of the Lisbon strategy, the measures to be adopted in the sphere of energy and climate changes along with provisions aimed at greater stability of financial markets, addressing at the same time the French Mediterranean Union project. In reality, risks of international recession, political and electoral concerns expressed by a number of leaders, the Balkan problem (Serbia’s elections and Kosovo’s future), and Middle-Eastern crises led to a series of delays. Environment and energy package. At the end of the works, Slovenian premier Janez Jansa, President-in-Office of the EU Council, submitted the 20-page final document adding his “full satisfaction for achieved results”. Mr.Jansa explained: “as regards energy and the environment we have endorsed the package of proposals put forward by the Commission in January. By June”, marking the end of the Slovenia’s presidency, “we will reach an agreement on energy market”, which entails the thorny issue of ‘unbundling’ (separating production and distribution property). Decisions regarding the environmental package of proposals were postponed to December 2008 (when the French Presidency will be in office). The debate on environmental issues was introduced by the document “Climate changes and international security”, illustrated by Javier Solana, High Representative for foreign affairs, who declared: “Climate changes could trigger a series of hazards”. “Humanitarian consequences” could be added to “political risks regarding security, directly affecting European interests”. “It is a matter of defining a mode of action to reduce CO2 emissions without hindering the development of our enterprises”, he pointed out. “This strategy will entail a series of costs. However, the price to be paid for lack of action would be much higher”. “An excessive price”, for the major industrial association of the 27 Member States BusinessEurope, chaired by Antoine Sellière, would mean unsustainable expenses for enterprises”. Lisbon strategy. The summit confirmed the guidelines on the last three-year phase of the Lisbon Strategy, conceived in the year 2000 and aimed at turning Europe, by the year 2010, into the first world power based on “the economy of knowledge”, on higher employment at the same time stepping up “social cohesion”. Good intentions remain, despite the economic climate allowing national reforms isn’t at all positive, marked by US cyclical slowdown, financial turbulence, sky-rocketing raw goods and energy prices, and higher inflation added to a dramatic exchange rate. The euro currency is “too strong”; this is an obstacle to European exports. For these very reasons, it’s important “not to lower one’s guard”. The 27 urged the implementation of national, structural, expense and budget reforms along with “sound” expenditure (welfare, pension systems..) and flexible job markets, the so-called “flexisecurity”. There are different areas of interest: “investing in knowledge and innovation”; “unleashing the enterprise potential”, small and medium in particular, increasing expenditure in research and education. The Eu and the Mediterranean. At the end of the summit, Jansa remarked: “As regards turbulence-countering measures, the Council convened that major solutions involve the private sector. However, the Union’s authorities voiced their willingness to implement regulatory and monitoring measures based on four main pillars”: more transparency for investors, supervision, stepping up prudential rule on risk management in the financial field, and incentives to increase market performance. The President of the Commission charged with developing proposals on these issues expressed optimistic feelings. “The European Union has overcome reality testing”, said José Manuel Barroso. “There is the capacity of facing together the major problems which lie ahead of us, despite the change in the financial framework”. As relates to Sarkozy’s ‘EU for the Mediterranean’ proposal, aimed at increasing cooperation between the two shores, Jansa confirmed that -all EU Countries will be involved, not only those bordering the Mediterranean Sea”. The Commission is now called “to file a proposal by Paris’ summit of July 13th”, “in continuity with the Barcellona process”, envisaging no more expenditures.