With one voice

At the Pittsburgh summit “the EU will speak with one coordinated voice”, declared Fredrik Reinfeldt, Swedish Premier and current President of the European Council. The summit of the 27, a summit he had actively promoted, was held in Brussels on 17 September: it was “a turning point” in establishing the common position Europe will support at the G20 in Pittsburgh, USA on 24-25 September.Financial crisis and post-Kyoto. European leaders meeting in Brussels last week “reviewed the measures adopted to tackle the financial crisis” and the global economic situation “that is beginning to show signs of recovery”. The improvement has been achieved, according to the explanations furnished by Reinfeldt himself at the end of the summit, “thanks to massive state support for the financial sector”, though this in turn has led to “large public deficits”. The heads of state and of government of the member countries of the EU agreed on the need to “work towards exit strategies that can pave the way for a return to sound public finances”. “A sustainable economy – this is the widely shared conviction – is an essential prerequisite for safeguarding employment”. At Pittsburgh the representatives of the EU will sit at the same table as the “big powers”: USA, Russia, China, India and various other “emerging countries”. They will discuss the reform of the international financial system, including the salaries and bonuses paid to top managers. Discussion at the G20 summit will also focus on the costs to counter climate change, in preparation for the UN Conference on post-Kyoto due to be held in Copenhagen in December. “We must stop the acting and start the action”, said Fredrik Reinfeldt, commenting on the slow progress of the negotiations so far.Recovery, markets, rules. As always, a final statement agreed among the leaders present was issued at the end of the EU summit (even an “informal” one like that held on 17 September). It comprises various chapters: Achieving a sustainable recovery; Giving priority to jobs; Rapidly implementing the commitments made for the reform of the financial market; Promoting responsible remuneration practices in the financial sector; Reinforcing the international financial institutions; Consolidating the recovery of the world’s poorest countries; Sharing the effort to fund measures for tackling climate change; and Promoting energy security. It’s a series of chapters that – apart from their high-sounding titles – suggests the wide spectrum of issues discussed by EU leaders at their summit, the global concerns that the 27 share and the many challenges that await shared, concrete and effective responses from the EU.Labour market at the forefront. On the eve of the Pittsburgh summit the position of the European Union is sufficiently clear: “The G20 ought to reaffirm its determination to continue to implement coordinated political measures with a view to creating the foundations for sustainable growth and preventing any recurrence of the financial crisis”. The efforts must continue “until recovery is assured”. EU leaders, based on their analysis of the present and their hopes for the future, then made a prediction: “Global support for the EU economy in 2009 and 2010 ought to reach approximately 5% of GDP”. The document speaks of sustainable budgetary policies to prepare for the post-crisis; and of the need to reinforce global macroeconomic coordination at the international level. It expresses its clear opposition to any form of economic protectionism, and hopes for a successful conclusion to the current Doha round of WTO trade negotiations in 2010. Finally the document places labour at the forefront, and underlines its primary significance in an efficient economic system: “To prevent permanent exclusion from the labour market, particular attention needs to be paid to the following aspects: maintenance of employment, creation of new jobs and promotion of mobility; reskilling the workforce; and increased access to employment” (youth, women, those made redundant by the recession). For the 27, therefore, “employment and social cohesion must be at the centre of reflection” at the G20. The poor are paying too high a price. Lengthy chapters are also devoted to the reform of the financial market (new rules, proper regulatory framework, functioning of the credit system, cracking down on “tax havens”, reinforcing such institutions as the World Bank and the International Monetary Fund). Of particular interest is the chapter devoted to the poor countries, which, due to their economic and social fragility, are – EU leaders recognize – paying too high a price for the recession. “The G20 ought to pledge to strengthen the recovery of the world’s poorest countries”, says the final document of the EU summit. “In particular, it ought to express support for investments in long-term food supply security, the reduction of energy poverty and better access to credits for small and medium businesses and for low income families”.