Money test

The issues are different but the situation is the same: money. In the hectic days in Brussels the issues at stake include the financial stability of euro zone Countries and the 2011 EU budget. These are “parallel” and “converging” themes, which focus on the question: is political-economic integration and intra-State solidarity the binding element of today’s European Union? EU budget. The burden of the economic crisis hovers over the EU27 budget. For this reason, Member States’ governments are trying to economize. The final vote on next year’s common budget was due to take place November 23, during the European Parliament plenary sitting (the EU budget authority with the Council, representing national governments). But the failed negotiations of the past few days between the two institutions opened new scenarios, while a new “draft budget” will be presented. “The implications are serious but not dramatic”, states a note by the EP. Both EP president Jerzy Buzek, and Alain Lamassoure, chair of the Budgets Committee, underlined the importance of avoiding “a budget month-by-month”. If this solution were adopted, according to EU Treaties, EU27 policies would be jeopardized (involving areas like agriculture, regional cohesion, culture, security, consumer protection, research…). EU Budget Commissioner Janusz Lewandowski underlined: “The EU budget is not for Brussels. It is for European citizens, businesses, researchers, students, rural communities, towns, cities and regions across the Union”. There is significant room for manoeuvre, but only in the next days will it be possible to ascertain whether a new agreement can be reached. How to help Dublin? At the beginning of the week the Eurogroup and Ecofin addressed the question of financial aid in different sectors. In fact, they agreed that Ireland needs a financial package to deal with surging deficit, that brings to mind the financial crisis experienced by Greece past spring. At the time, overcoming a number of internal diffident stances – notably on the part of the more financially “virtuous” States – the EU decided to set up a 750 billion euro fund to rescue Countries undergoing financial difficulties and save them from market speculation. Now the situation is the same (and Portugal is also on the borderline). But there’s a difference: Athens had negotiated the bailout, while for the moment Dublin’s government rejected the proposal, as it intends to overcome the impasse with its own forces. A “European” problem. A standstill characterizes the present situation. However, in addition to national balances, what’s at stake is Europe’s capacity to provide a joint answer to financial “suffering”, under the banner of renewed thrust and solidarity. And while politicians – national leaders as well as EU institution chairs – voiced their concern over future developments, European media convey signs of alarm to the public opinion. In fact, according to “The Irish Time”, Ireland’s bailout, regardless of the final outcome, will be a major turning point in the history of the Country, and a major event of the European Union. Thus the ongoing crisis is viewed as a “testing ground” to ascertain whether “the EU is still a social and political project”. When in Rome… The Portuguese daily “I” plays with popular customs with the headline “two Countries, two beers, one destiny”. The Sagres and Guinness beers bring to mind the problems shared by Lisbon and Dublin. The Portuguese newspaper points out that most economists “take for granted a financial intervention in the near future, which Portugal cannot refuse”. “El Mundo” wonders whether Spain will be the next nation to require EU support. “The Irish Situation – states the newspaper – could damage Spain if Madrid isn’t able to convince the markets of its reliability”. The media tend to reflect the domestic viewpoints: from Greece Germany is viewed with suspicion; Great Britain seems willing to rescue Ireland but doesn’t wish to become involved in “continental” instability. Nordic countries and Austria underline their relatively “sound” deficits… The daily “Les Echos” in France raises a doubt: will the EU take long-lasting decisions or will it tend to postpone its choices, hoping to appease the market as was the case of Greece?