Growth beyond the crisis

The president of the Commission doesn’t want to fuel pessimism. He reiterates "confidence", considers the "positive elements" at the end of the tunnel of the economic crisis already perceivable, mentions the –albeit partial – results achieved to contain financial instability, highlighting growth-boosting measures. For the past three years José Manuel Barroso has been in the front line to counter recession, although not all the initiatives taken by his college were effective, while others weren’t adopted by EU27, or if they were, it was only in words. On the occasion of the European Council of March 1-2, whose conclusions appear rather obvious, he decided to speak off the cuffs…Rigour and development. "Our efforts should be aimed at reconciling economic competitiveness with the respect of economic and social rights", Barroso said a few days ago in a meeting with Trade Unions to prepare the Tripartite Social Summit that precedes the European Council. Barroso thus sends a message to ETUC-CES trade unions that rallied in Brussels and in other European Countries on February 29 calling for measures for growth and employment, protesting against the cuts carried out in European countries to counter the financial and economic crisis. "I have had excellent discussions with European trade unions. The Commission wishes to step up the dialogue with the social partners that ought to take place across EU27". "We intend to preserve the European social model – Barroso said – and that’s why we need to raffirm it. As a Commission we highlight the need for growth-boosting measures along with those already undertaken for debt-reduction and budgetary discipline". According to the head of the Executive, "stability and growth must proceed hand in hand". Different messages. Referring to the European Council that brought EU27 heads of Government or State to Brussels to discuss economic and financial hurdles and extending his glance beyond this event, Barroso underlined the need to introduce a tax on financial transactions ("for fairness in the redistribution of sacrifice") linked to the ongoing crisis, he conveyed his endorsement of project bonds ("to support investments" for infrastructure projects, transport, broadband…), welcomed the proposal "strengthening firewalls", (the temporary EFSF relief fund and the permanent ESM fund). He conveyed his opposition – albeit "temporary" – to the creation of a specific Committee tasked with following the developments in Greece. The last authoritative voice that requested an ad hoc Commissioner for the situation in Athens was by Eurogroup president Jean-Claude Juncker. Europe 2020. As regards the debate on the agenda of EU27, the head of the Executive said that the priorities outlined in the dedicated Council of January 20 – youth unemployment and support to SMEs – "have remained the same". Perhaps, speaking off the cuffs, Barroso is hinting to the fact that some governments had better implement structural reforms, seeking concrete ways for the recovery of productive activity, to reform the job market and pension systems, to give some hope to the many (over 5 million) young people without a job. The Portuguese politician had already clarified his stand on February 27 in a nine-page letter. The points made appear to stem from a logical – and rather coherent – approach: various measures have been adopted to redress the economy in EU countries ("that must be followed by action"); economic forecasts show signs of recovery in the second semester; industries "start believing in the chances of growth"; thus "we must recover the main objectives of the Europe 2020 Strategy that includes job creation, innovation and competitiveness, training, and measures to combat social exclusion".Serbia, Ireland… On the granting of EU candidate status to Serbia he said: "Serbia deserves the candidate status. That has been already for some time the opinion of the European Commission". But Council of Heads of Government and State must take this decision unanimously: "It is my belief that the Council should proceed in this direction", he said. Another question: are you concerned about the fact that Ireland will hold a referendum that will decide on the ratification of the Fiscal Compact treaty? "Every country has the possibility to decide how the treaty should be ratified at domestic level" was his diplomatic reply. "Fiscal Compact certainly meets also Ireland’s interests to ratify the treaty".