In the search for solutions

As often happens, the European Council, which is due to meet once again in Brussels on 15/16 October, will have too packed an agenda to be able to tackle with the necessary consideration all the issues on the order of the day. The meeting of heads of state and of government, which will be held on two half days, is being called in fact to evaluate the climate-energy package, approve measures on immigration and asylum, and review the situation of the Lisbon Treaty. But the spotlight will especially be on the financial crisis, for which the EU will seek shared solutions.From the G4 to the summit. The problem was at the centre of the so-called G4 last weekend, in which the leaders of Germany, France, Great Britain and Italy took part, together with the top brass of the European Commission, European Central Bank and Eurogroup. The crisis was discussed again at the meeting of the 15 economic ministers of the countries that have adopted the single currency on 6 October and then on the following day at the meeting of ECOFIN (finance ministers of the EU-27). At the EU level a febrile round of consultations is in progress, involving individual governments, EU institutions, ECB and European Investment Bank. Each country is examining its own internal measures to respond to the crisis, while contacts with the American authorities remain intensive. Even Vladimir Putin, Russian premier, has urged world leaders to “study coordinated measures” in view of the exceptional nature of the situation and the risks that “threaten global financial stability”.Protecting savings. Another important development is the joint statement signed by all EU leaders, in view of the summit, in which they pledge to “take any necessary measures to maintain the stability of the financial system, by the injection of liquidity through the Central Banks, actions aimed at individual banks, and the reinforcement of schemes for the protection of deposits”. The commitment is explicit: “No saver who uses deposits in the banks of our countries has suffered losses and we will continue to take the necessary measures to protect the system and savers”. Lastly, the “need for coordination and close cooperation” is underlined.Cross-border effects. While waiting to see whether on the economic front the 27 governments of the EU will succeed in showing unity of action, the European Parliament, meeting in Brussels on 8-9 October, held a debate with exponents of the Commission and the current French Presidency of the Council. In his speech to the Parliament, the head of the Executive, José Manuel Barroso, said: “The gravity of the financial crisis is clear to us all and the next EU summit will be dominated by this problem”, which “involves many players” and is “rapidly evolving”. Barroso expressed his satisfaction about the decision of the ECB to lower interest rates and called for “coordinated interventions” at the EU level. In effect, however, Europe does not have its own instruments of action to tackle the crisis of the financial markets and the Portuguese politician was forced to recognize that “state interventions are mainly being carried out at the national level, where money and powers are to be found”. Nonetheless “member states must act on the basis of common principles, taking into account the cross-border effects of the rescue operations”. European task force. The President of the Commission further announced the setting up of a high-level group to monitor the situation. It will be chaired by Jacques de Larosière, former Director of the International Monetary Fund, and its members will include the European Commissioners with economic portfolios. Barroso then warned: “This crisis is already having serious consequences on the real economy. We are facing a difficult time”. He continued: “Today we must act with measures of financial rescue, but we must also deal with human rescue. Too many people in the world are dying of hunger. We need to help the poor countries that are suffering more than us in this phase”. He then concluded: “At the summit we’ll also talk of the Lisbon Treaty. The fact is that recent events and the financial crisis demonstrate the need for this treaty, if we are to have a stronger Europe and a Europe that is able to act”. Roadmap for Lisbon. In his address to the EP, Jean-Pierre Jouyet, French Minister for European Affairs, judged “positive the coordination so far demonstrated at the EU level”. “Let us respond to the crisis – he said – with all our possible resources and structures”, also because “we aren’t a federal state like the USA. Jouyet then urged “the IMF to act as a real financial watchdog”. Lastly, speaking of the Lisbon Treaty, he explained that during next week’s summit “the Irish government should present a roadmap that all member states could sign up to during the European Council in December”.