Conscious of the gravity

Coordinating the responses, supporting the real economy and exploiting the advantages of the single market; taking measures to address the social and employment repercussions of the recession; regulating the markets; investing in energy networks and sustainable forms of production; and bringing shared positions to the forthcoming international summits, beginning with the G20 in London on 2 April. The European Council of 19-20 March took various decisions, confirming the impression of a Europe that is acting with full consciousness of the gravity of the crisis, even if the measures adopted are – by unanimous admission – not yet sufficient. The list of the results. “The agreement we have reached will help the European Union overcome the crisis. We have approved measures able to revive the economy and safeguard employment”, said Mirek Topolanek, Czech premier and current President of the EU, in his concluding remarks at the recent summit in Brussels. Topolanek expressed optimism, perhaps excessive: “The Presidency proved equal to its role – he said -. The EU is adopting a common front against the recession by safeguarding” the rules “of the free market”. He listed a long series of results, including “unanimous approval of the [EU] position for the G20” in London. The summit also confirmed the allocation of 5 billion euros, from the EU budget surplus, to projects of “energy security” and to greater diffusion of broadband. In addition the EU has made an allocation of 50 billion euros, and not 25 as previously decided, “for those countries that are having problems with public accounts or balance of payments, and that have applied for such aid” (so far Latvia, Hungary and Romania have applied for such aid).Social repercussions. The summit of the twenty-seven heads of State and of government unanimously approved the common document for the G20. It also reaffirmed, as already decided at the extraordinary summit of 1st March, that there won’t be a single plan of interventions for Central and Eastern Europe, but that the problems “would be examined on a case by case basis”. The extraordinary summit of 7 May was also confirmed; it will focus on the situation of the labour market and on the “social dimension” of the crisis. As regards the EU position for the UN summit in Copenhagen on post-Kyoto, scheduled for December, the EU Council did not specify when it will formulate a common proposal, though this ought to be published by October or at the latest November.Networks for energy. Of the 5 billion euros appropriated from budget surpluses and allocated to energy and fast internet (broadband), “1.5 billion will be reserved for gas pipelines”, explained Alexander Vondra, Czech Minister for European Affairs. “This is a concrete response to this winter’s gas crisis and we want to prevent other similar situations” in future. 200 million euros will be reserved for the main gas-line project, called Nabucco, to pipe gas from Central Asia into Europe (Germany, Austria, Hungary and Romania) by-passing Russia. But similar projects regarding the Baltic area, the Mediterranean and the North Sea are already in the start-up phase.Global context. The final comment on the European Council made by the President of the Commission was equally upbeat. “We have passed from words to deeds”, said José Manuel Barroso. And various other leaders of member countries echoed his words. “There are some outstanding results – explained the head of the Executive -. We have taken decisions aimed at reviving the economy without decoupling it from social and labour questions. We need in fact to provide incentives for investments and to build the confidence to promote the recovery”. “The European position however needs to be placed in the wider context of an international response”, added Barroso. The EU, which had responded negatively to the request for a more ambitious plan of support as called for by US President Obama, is however convinced that “the G20 in London will be very important”. Forthcoming commitments. As always happens, some of the decisions taken will be deferred for official adoption to the next EU summits. This is confirmed by the official “Conclusions”, which explain as follows: “In June, the European Council will adopt the first decisions to reinforce regulation and surveillance in the financial sector, on the basis of the Commission’s proposals and will then devote a detailed discussion in Council to the de Larosière Report” (the report of the high level group which for months has been examining the issue). As regards the regulation of financial markets, the final document says that the European Council invites member states and the European Parliament “rapidly to reach an agreement on a legislative package relating to credit rating agencies, the solvency of insurance companies, the asset requirements of banks, cross-border payments and electronic money, so as to permit its adoption prior to the suspension of parliamentary activities” in May.