Reorganizing and reinforcing

The media’s depiction of the European Council and of the Eurogroup of October 23, including the “tail” of the reunions, scheduled to take place October 26, is accurate in content but with blurred details. EU27 leaders convened to discuss various items, that included the response to the problem of the sovereign debt of some EU countries to which is linked the stability of the euro currency, EU Governance, the revitalization of community economy, the EU’s common stand due to be presented at the G20 in Cannes the first week of November and at the upcoming UN Climate Conference that will take place in about a month, in Durban. Some basic agreements were reached with the winding up of political tensions, while other decisions were adjourned (such as banking recapitalization) for three days. And the cards are still on the table. Diplomatic optimism. In its various expressions (European Council, EU27; Eurogroup, 17 countries that adopt the single currency) the negotiating table of Sunday October 23 was marked by a hot debate. At the end of the meeting, the President of the European Council, Herman Van Rompuy, and the President of the Commission José Manuel Barroso, wished to – or maybe had to -show their satisfaction and their optimism. Europe’s rescue fund is being drawn up, banks will be recapitalized, “mister euro” (until June 2012 it will be Van Rompuy himself) will coordinate the vigilance in the euro zone, and putting the brakes on financial speculation is expected to prevent further crises; while the six-pack, the “European semester”, and the euro plus pact will promote public budget surveillance. The measures for the recovery of national economies also with the help of EU structural funds appear to enjoy the support of the heads of Government or State … For some States, such as Spain, Portugal, and Ireland, the situation of the budgets and of the economy are improving (thus decreasing EU and market pressure). For others, like Italy and Greece, the danger point has almost been reached, and that’s why the 26 October summit will be decisive.Official documents. As usual, the final statements of the European summit are not crystal clear. In other words, the decisions are “put into writing” while those items that were adjourned are passed over. “In addition to addressing the immediate challenges posed by the financial crisis, it is essential to intensify efforts to secure sustainable and job-creating growth”, is written in the Council conclusions. “Budgetary consolidation and debt reduction are of crucial importance in order to ensure the sustainability of public finances and restore confidence. At the same time, determined action is required to strengthen the economy already in the short run”. It is therefore crucial for the European Union – claim Member States leaders, that are now expected to pass from words to actions – to implement all aspects of the Europe 2020 strategy. “The Member States will accelerate structural reforms in line with the recommendations made in the context of the European semester,” is the explicit promise. In this framework, the European Council “has identified a set of priorities which should be fast-tracked because of their significant impact on jobs and growth in the short to medium term. The development target. While the summit of October 26 is decisive for the stability of the euro zone countries, the Council called for a stronger focus on “growth-enhancing aspects” and identified “a number of key priorities for internal economic policy that need to be pursued in the short term in order to achieve smart, sustainable and inclusive and green growth”, such as completing the single market, including the “Digital Single Market” with broadband coverage across the EU by 2015; reducing the administrative burden, in particular for SMEs (in order to meet the objective of a 25% reduction by 2012); reducing the overall regulatory burden; structural reforms, notably welfare systems and job market, where required. Improvements are deemed especially important in the areas of energy supply, research, productive investments. The Council “conclusions” underline, “Strengthening financial regulation remains a key priority at the EU and the global level. Much has been achieved since 2008 with the reform of our regulatory and supervisory framework, but efforts need to be maintained to address the weaknesses of the financial system and prevent future crises”. And in fact these are the items on the agenda of the next meetings.