Saving stability

Reaching an agreement to get grips with Greece’s financial difficulties; giving the initial -albeit partial -green light to the Europe 2020 Growth and Employment Strategy; jointly tackling the forthcoming G20 and assessing the state of work for a global agreement on climate change. The European Council of March 25-26 reached some of its targets. Although a number of questions remain open.An efficient mechanism? As relates to the financial situation of Greece (the issue was not on the summit’s agenda. It gained priority due to widespread concerns over the stability of the Euro area) 16 EU heads of State and Government signed a document in which they “reaffirm their willingness to take determined and coordinated action, if needed, to safeguard financial stability in the euro area”. Led by France and Germany, all States adopting this same currency agreed on a “package involving substantial International Monetary Fund financing and a majority of European financing,” through “coordinated bilateral bank loans”. The total sum amounts to over 30 billion Euro, two thirds of which could be granted by Europe and the remaining third by the IMF. However, as Council President Herman van Rompuy pointed out, this mechanism is to be understood as a “last resort”. “We reaffirm our commitment to implement policies aimed at restoring strong, sustainable and stable growth in order to foster job creation and social cohesion”, they state in the document. The question was unlocked thanks to the convergence of France and Germany. Some States declared their “reluctance” to intervene in support of Athens, while Central Bank president Jean-Claude Trichet, conveyed “scepticism” especially as relates to IMF intervention. Strategy objectives. Another imperative of the summit was to establish “the fundamental aspects and the bearing” of Europe 2020 and “define the new strategy’s framework structure” (that will replace the Lisbon 2000 structure which produced very poor results) due to be adopted in June with commitments at national level. During the meeting Van Rompuy said: “Economic performance should be very strong to protect the European model of social market economy”. The EU needs to focus on “economic governance and the coordination of policies, notably as relates to the competitiveness and the divergences between member states as well as externally and redressing the balance of payments”. The strategy sets out to meet several targets that include: reviving public finances whilst preserving social models; creating inclusive and efficient labour markets; promoting a sustainable economy and strengthening the domestic market.Poverty and education adjourned. At the end of the meeting van Rompuy conveyed satisfactory remarks. “At the opening of the summit our goal was to reach an agreement over five key targets for growth and employment” defined by the Europe 2020 Strategy. “This agreement has been reached”. In fact, the agreement was reached on three items: “to bring to 75% the employment rate for women and men aged 20-64”; bringing combined public and private investment levels in the sector of research to 3% of GDP; reducing greenhouse gas emissions by 20%. Several countries failed to endorse other items, and operative decisions were adjourned to the Council in June. These are: “improving education levels, in particular by aiming to reduce school drop-out rate” and promoting “social inclusion, in particular through the reduction of poverty”. EU 27 stable president pointed out that the Europe 2020 targets constitute “are the synthesis of the European development model that we inherited and that we wish to pass down to the next generations”. G20 and the post-Copenaghen. “We sought to respond to the needs of the moment and work on Europe’s long-term future”: European Commission president José Manuel Barroso commented on the summit which, he said, was “very successful”. On Europe 2020 “we have an agreement based on the Commission proposals. Our goal is to address this topic in June and establish the commitments at national level and in the EU focussing on education and on combating poverty”. The Commission has been given mandate to define the EU’s stand in view of the next G20 and the Bonn and Cancun summits on climate change.