Thursday

17th Jan 2019

EU has survived economic crisis, Barroso says in first State of Union address

  • Mr Barroso in Strasbourg on Tuesday indicated that the worst of the crisis has passed in an upbeat, presidential-type speech (Photo: ec.europa.eu)

European Commission President Jose Manuel Barroso in a major speech on Tuesday morning said the EU has survived the economic crisis.

"Over the last year, the economic and financial crisis has put our Union before one of its greatest challenges ever ... As I look back at how we have reacted, I believe that we have withstood the test," Mr Barroso told MEPs in his first ever so-called State of the Union address. "Those who predicted the demise of the European Union were proved wrong."

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

His remarks come after a threat of sovereign default by eurozone countries such as Greece and Spain threatened to pull apart the single currency in a potentially deadly blow to the 50-year-old European project.

Noting that "our work is not finished," the Portuguese politician put the EU's economic future at the top of his five-point agenda.

He defended the commission's push to regulate EU countries' debt levels despite rising social tension in countries such as Greece, which has seen an outbreak of violent street protests in reaction to EU-and-IMF-imposed cutbacks.

"Unsustainable budgets make us vulnerable. Debt and deficit lead to boom and bust. And they unravel the social safety net. Money that is spent on servicing debt is money that cannot be spent on the social good," he said.

He spoke up for an "ambitious" future budget, saying: "The EU budget is not for Brussels - it is for the people that you represent ... a euro spent at European level gets you more than a euro spent at national level."

With the commission to shortly publish ideas on how to raise extra EU money by, for example, directly taxing financial transactions, the commission chief attacked the culture of "pessimism" and Brussels nay-saying in some EU capitals: "I find it extraordinary that some are already rejecting them [the new budget ideas], without even knowing what they will be."

He set out a shopping list of upcoming economic initiatives.

He said Brussels will propose launching "EU project bonds" together with the European Investment Bank to help finance new infrastructure. He promised an "ambitious Single Market Act" to cut red tape for small businesses, liberalise the energy sector and boost "green collar" jobs.

He said the commission will attack risk-generating financial practices such as big bonuses, credit default swaps and naked short selling. He also promised to overhaul the "byzantine" complexity of the EU budget, in which countries give money with one hand and take it away with another, and to move to a 10-year budgeting period instead of the current seven.

In a message pregnant with references to EU values, Mr Barroso took a swipe at France's controversial policy of expelling Roma.

Without naming Paris, Mr Barroso said, to loud applause: "Everyone in Europe must respect the law, and the governments must respect human rights, including those of minorities. Racism and xenophobia have no place in Europe."

He also lashed out at Iran over the case of a woman sentenced to death for adultery: "I am appalled when I hear that Sakineh Mohammadi Ashtiani is sentenced to death by stoning. This is barbaric beyond words."

European Parliament officials tweeted during the speech that around 600 MEPs attended the event despite earlier dropping plans to fine deputies who skipped it.

Mr Barroso's call for EU countries to support the EU's new foreign relations chief, Catherine Ashton, and her diplomatic service in order to give the EU more clout on the world stage was echoed in the plenary debate following the address.

Senior MEPs began by criticising Ms Ashton for not going to the launch of Middle East peace talks in Washington last week, however. Joseph Daul, the French leader of the centre-right European People's Party did not name the British baroness, but said: "How can we justify that we are not present at the [negotiating] table?"

The leader of the Liberal group, Belgian MEP Guy Verhofstadt, chided her for not attending the Barroso speech. "It would be better if she were here," he said.

The State of the Union address, which recalls the US President's annual speech to the houses of Congress, is to be repeated every year.

Coming in the wake of the Lisbon Treaty, which is seen by eurosceptic politicians, such as British Conservative MEP Timothy Kirkhope, as a "step towards [an EU] superstate," Mr Barroso's presidential speech has also raised the question of who is the new top man in the Brussels hierarchy.

"I thought Van Rompuy was the President of the EU," a Brussels-based diplomat from one non-EU country told this website, referring to the Belgian President of the European Council.

German spies to monitor far-right AfD party

Germany's domestic spy agency, the BfV, is to start monitoring the far-right AfD party in a move endorsed by the government, but decried as a witch-hunt by the party's leaders.

Opinion

On Morocco, will the EU ignore its own court?

If the European parliament votes in favour of the new Morocco agreement without knowing that it complies with the European Court of Justice judgement, how can it demand that other countries respect international law and their own courts?

News in Brief

  1. Another referendum 'would take a year', Downing St says
  2. 82-year old Berlusconi to run in EU elections
  3. EU parliament votes to triple funds for democracy promotion
  4. EU parliament backs linking budget payments to rule of law
  5. Verhofstadt voted for Draghi amendment 'by mistake'
  6. 'Plan B' Brexit vote in UK parliament set for 29 January
  7. Verhofstadt wanted Draghi out of G30 group
  8. Putin heads to Serbia amid warnings against West

Centre-right MEPs want transparency vote to be secret

A number of centre-right MEPs are pushing for a secret ballot on a plenary vote that would make EU lawmakers more transparent and accountable to the public - in a move described as "absurd" by Transparency International.

Opinion

On Morocco, will the EU ignore its own court?

If the European parliament votes in favour of the new Morocco agreement without knowing that it complies with the European Court of Justice judgement, how can it demand that other countries respect international law and their own courts?

Stakeholders' Highlights

  1. International Partnership For Human RightsKyrgyz authorities have to immediately release human rights defender Azimjon Askarov
  2. Nordic Council of MinistersSeminar on disability and user involvement
  3. Nordic Council of MinistersInternational appetite for Nordic food policies
  4. Nordic Council of MinistersNew Nordic Innovation House in Hong Kong
  5. Nordic Council of MinistersNordic Region has chance to become world leader when it comes to start-ups
  6. Nordic Council of MinistersTheresa May: “We will not be turning our backs on the Nordic region”
  7. International Partnership for Human RightsOpen letter to Emmanuel Macron ahead of Uzbek president's visit
  8. International Partnership for Human RightsRaising key human rights concerns during visit of Turkmenistan's foreign minister
  9. Nordic Council of MinistersState of the Nordic Region presented in Brussels
  10. Nordic Council of MinistersThe vital bioeconomy. New issue of “Sustainable Growth the Nordic Way” out now
  11. Nordic Council of MinistersThe Nordic gender effect goes international
  12. Nordic Council of MinistersPaula Lehtomaki from Finland elected as the Council's first female Secretary General

Latest News

  1. Brexit delay 'reasonable', as May tries cross-party talks
  2. MEPs allow Draghi's membership of secretive bank group
  3. EU parliament backs Morocco deal despite row
  4. Barnier open to 'future relations' talks if UK red lines shift
  5. German spies to monitor far-right AfD party
  6. On Morocco, will the EU ignore its own court?
  7. UK parliament rejects May's Brexit deal in historic defeat
  8. EU suggests majority vote on digital tax by 2025

Stakeholders' Highlights

  1. Nordic Council of MinistersNordic design sets the stage at COP24, running a competition for sustainable chairs
  2. Counter BalanceIn Kenya, a motorway funded by the European Investment Bank runs over roadside dwellers
  3. ACCACompany Law Package: Making the Best of Digital and Cross Border Mobility,
  4. International Partnership for Human RightsCivil Society Worried About Shortcomings in EU-Kyrgyzstan Human Rights Dialogue
  5. UNESDAThe European Soft Drinks Industry Supports over 1.7 Million Jobs
  6. Mission of China to the EUJointly Building Belt and Road Initiative Leads to a Better Future for All
  7. International Partnership for Human RightsCivil society asks PACE to appoint Rapporteur to probe issue of political prisoners in Azerbaijan
  8. ACCASocial Mobility – How Can We Increase Opportunities Through Training and Education?
  9. Nordic Council of MinistersEnergy Solutions for a Greener Tomorrow
  10. UNICEFWhat Kind of Europe Do Children Want? Unicef & Eurochild Launch Survey on the Europe Kids Want
  11. Nordic Council of MinistersNordic Countries Take a Stand for Climate-Smart Energy Solutions
  12. Mission of China to the EUChina: Work Together for a Better Globalisation

Join EUobserver

Support quality EU news

Join us